In this article we will discuss about:- 1. Meaning of Import Quotas 2. Objectives of Import Quotas 3. Types. Meaning of Import Quotas: The import quota means physical limitation of the quantities of different products to be imported from foreign countries within a specified period of time, usually one year. The import quota may be fixed either in terms of [...]
It is almost a settled fact that there is no exact equivalence between import tariffs and import quotas in the real life situation involving some monopoly element. But it cannot be denied that there are certain similarities between the two. Firstly, both tariffs and quotas have the same objectives such as reduction in the volume of imports, protection of home [...]
In this article we will discuss about the merits and demerits of restricting imports through quotas. Merits of Quota: Two main merits of restricting imports through quotas are: 1. Foreign exchange implications: In fact, the main advantage of a quota is that it keeps the volume of imports unchanged even when demand for imported articles increases. It is so because [...]