The United States wants to limit the amount of a product that can be imported into the country for a period of time by setting a maximum import quantity. To do so, the United States should institute

Question

Juan

Business

10 November, 00:17

The United States wants to limit the amount of a product that can be imported into the country for a period of time by setting a maximum import quantity. To do so, the United States should institute

+2

Answers (1)

Know the Answer?

Rylee Richmond · Answer 1

The options for this question are the following:

a. an exchange rate

b. a quota

c. a boycott

d. a dumping law

e. a tariff'

The correct answer is b. a quota.

Explanation:

Import quotas are tools that countries have when it comes to limiting the physical quantity of a product that can be imported into their territories.

Within the different methods of control of foreign trade that a State has, there is the adoption of import quotas.

Therefore, this economic mechanism of trade restriction therefore supposes the application of limits of units or maximum weight of product that it is possible to import during a determined period of time.

Introducing this type of commercial measures is perfectly compatible with the introduction of others simultaneously. That is, a government can establish quota-based import trade strategies and set tariffs, for example.