An import quota is:
A) a fixed fee that an importing firm must pay the domestic government in order to have the legal right to sell the product in the domestic market.
B) the fee an importing firm must pay to the domestic government on each unit it brings into the domestic market.
C) a restriction limiting the quantity of imported goods that can legally enter a domestic market.
D) None of the statements are correct.

Question

Quizplus · Accepted Answer

An import quota is a restriction that limits the quantity of imported goods that can legally enter a domestic market. It sets a limit on the amount of a certain product that can be imported during a specific period. It is often used by governments to protect domestic industries from foreign competition or to regulate trade with specific countries.

An Import Quota Is