In this article we will discuss about:- 1. Meaning of Import Quotas 2. Objectives of Import Quotas 3. Types. Meaning of Import Quotas: The import quota means physical limitation of the quantities of different products to be imported from foreign countries within a specified period of time, usually one year. The import quota may be fixed either in terms of [...]
It is almost a settled fact that there is no exact equivalence between import tariffs and import quotas in the real life situation involving some monopoly element. But it cannot be denied that there are certain similarities between the two. Firstly, both tariffs and quotas have the same objectives such as reduction in the volume of imports, protection of home [...]
The import quotas can have various effects such as price effect, protective or production effect, consumption effect, revenue effect, redistributive effect, terms of trade effect and balance of payments effect. Some of them can be studied under the partial equilibrium analysis while some others under general equilibrium system. However, these effects have been almost exclusively analysed under the partial equilibrium [...]