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Question

Difficulty: EasyTrade Restrictions, Tariffs, and Customs Control

Which trade restriction measure imposes a direct numerical limitation on the quantity of a specific good that may be imported into a country within a given timeframe?

  1. Import quotaAnswer
  2. B
    Bill of lading
  3. C
    Balance of trade
  4. D
    Bonded warehouse

Answer

An import quota is a trade restriction that establishes a direct physical or numerical limit on the quantity of a commodity allowed into a country.
An import quota is a non-tariff trade restriction designed to limit the physical quantity or volume of a specific foreign commodity allowed into a country during a specified time period.

Step-by-Step Solution

1
Analyze the restriction mechanism described in the stem
The concept specifies setting a maximum physical or quantitative ceiling on imported goods.
Understanding whether a trade barrier acts on price (tariff) or physical volume (quota) identifies the correct policy instrument.
2
Identify the matching trade policy term
An import quota directly regulates import volume by restricting the number of units entering the domestic market.
Governments use quotas to safeguard domestic producers from foreign competition by fixing import volume ceilings.

Key Concept

Import Quota
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Topics

Trade Restrictions, Tariffs, and Customs Control

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