Buy custom Trade Policies: Import Tariff And Quotas
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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2483 |
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The quota is set by a national government and is a maximum amount of some import as measured based on quantity or value. Determining who is allowed to import under the quota is usually done through direct allocation or sales of import licenses. The licenses can be held by individuals or firms, both foreign and domestic...
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For example, a country might limit sugar imports to 50 tons per year. Quotas, like other trade restrictions, are used to benefit the producers of a good in a domestic economy at the expense of all consumers of the good in that economy.
Critics say quotas often lead to corruption (bribes to get a quota allocation), smuggling (circumventing a quota), and higher prices for consumers...
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