Trade Quotas

Definition

Trade quotas refer to government-imposed restrictions on the quantity of goods or services that can be imported/exported, typically with the aim of protecting domestic industries or maintaining national security. They limit the amount of a specific product that can be traded.

Related terms

Tariffs: Tariffs are taxes imposed on imported goods, increasing their prices and making them less competitive compared to domestic products.

Embargoes: Embargoes involve complete bans on trade with specific countries for political or economic reasons.

Subsidies: Subsidies refer to financial support given by governments to domestic industries, helping them compete with foreign producers.