Question

The tiny South Pacific island country of Maroji produces a lot of milk and milk-based products. To protect this industry, Maroji mandates that only designated trading companies can import cheese, each of which is allocated the right to import a maximum number of pounds of cheese each year. By doing this, Maroji controls the amount of imported cheese. This is an example of a(n) _________

Answer 1

This is an example of a(n) Import Quota .

Explanation:

A restriction in direct manner that controls the quantity of goods that is being imported to a country refers to the import quota. This restrictions is imposed by the issue of an import license to a firm or a group of firm or even individual. The main aim of these import quota is to enhance the  domestic producers  to gain advantage through the limitations in competition that arises form importing.

In the given scenario, the company name Maroji involves in the production of  a lot of milk and milk-based products. The company then makes it compulsory for only some of the companies to import cheese with the allocated right in the  importing of a maximum number of pounds of cheese each year. This acts as an example of Import Quota .