Quotas are favored over free international trade by _____

Question

Quizplus · Accepted Answer

Quotas restrict the quantity of imports, which typically benefits domestic producers in the importing country by reducing competition from foreign producers. Foreign producers with quota rights can also benefit by having guaranteed access to a portion of the importing country's market. Consumers in both the importing and exporting countries generally prefer free international trade as it can increase competition and lower prices. Domestic producers and consumers in the exporting country may also prefer quotas if they benefit from reduced competition and higher prices. Foreign consumers do not benefit from quotas as it restricts their access to the importing country's market.

Quotas Are Favored Over Free International Trade by _____