A trade quota is a restriction on the quantity of goods that can be imported. It is a measure used by governments to protect their domestic industries and to promote economic growth. By limiting the amount of imports allowed, the government can control the amount of foreign competition that domestic producers face, thereby aiding local producers.

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A Trade Quota Is

Question 36

Multiple Choice

A trade quota is:

A) a restriction on the quantity of goods that can be imported.
B) a tax on imports.
C) a tax on exports.
D) the restriction of trade through regulations on domestic producers.

Correct Answer: