Question

How do quotas help domestic producers?

Answer 1

Quotas help domestic producers to facilitate the domestic goods’ sale.

Further Explanation:

Quotas are trade restrictions which are imposed by the government and it limits the monetary value or money of goods which country can export or import during a particular period. The quota is used by countries in international trade. The volume of trade is regulated by the use of quotas between the countries.

The Quota is different from customs or tariffs, which place taxes on exports and imports. Governments impose both tariffs and quotas as protective measures that control trade between countries. There are various differences between them also.

There are basically three forms of quotas in the United States:

1. Absolute

2. Tariff-rate

3. Tariff preference

The highly restrictive quotas paired with high tariffs help in leading trade disputes and also other problems between countries. Government designs tariffs to raise the cost to the supplier seeking or producer to sell products within a country.

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Answer Details:

Grade: College

Topic: Quotas

Subject: Social Studies

Keywords: domestic producers, quotas, government, monetary value, export, import, tariff, international trade

Answer 2

Quotas help domestic producers by facilitating the sale of more domestic goods.

A quota is a trade restriction that is imposed by the government to limit the products that can be imported or exported over a period of time. In other words, quota sets limits on the number of products that can be imported in a specified period.

Further Explanation

Quotas are used in international trade towards regulating the total quantity of trade in a particular country with other countries. When a particular country sets a numerical limit on the number of goods that can be imported, it has a lot of benefits for local producers.

Some of the benefits include

• It increases domestic productions and
• It helps in restricting foreign competition

Countries also used quotas to protect new or domestic industries that are not efficient, especially industries that are important to their economy or domestic industries that play a vital role in job production.

Countries always have the notion that if trade restrictions are imposed on products, it will lead to the followings:

• Job sustainability
• Increases the sales of locally produce goods
• Increases Tax revenue

In the United States, the agency that is saddled with the responsibility of overseeing international trade is the U.S customs and border protection agency.

LEARN MORE:

• domestic producers brainly.com/question/12056809
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KEYWORDS:

• domestic goods
• products
• quota
• job
• tax
• revenue