Quick Definition

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a specified period.

Examples

• 1A country sets a quota on the import of sugar to protect domestic producers from foreign competition.
• 2An export quota on crude oil to control the volume of oil leaving the country, aiming to stabilize local markets.
• 3A quota system in international trade agreements to balance trade between countries, ensuring that no single country dominates the market.

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