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Economics 101: What Is An Import Quota? | SterlingTerrell.net

Economics 101: What Is An Import Quota?


What is an import quota?

An Import Quota is a limit, or restriction, on the amount of a good that can be imported.

It limits goods produced in the world market and sold in the domestic market.

For example:

For many years there was an import quota on peanuts in the USA.

This restriction of foreign suppliers benefits domestic producers by artificially increasing prices.