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2 June, 20:41

The Republic of Monaslu has a direct restriction on the quantity of cheese that may be imported into the country. Which of the following instruments of trade policy is being used by the Republic of Monaslu?

(A) tariff rate quota

(B) export ban

(C) voluntary import restraint

(D) import quota

(E) quota rent

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Answers (1)
  1. 2 June, 20:58
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    Answer: (D) import quota

    Explanation:

    Import quota is known to be a form of trade restriction in which the government of a particular country limit the quantity of imported goods and services from other countries. The government imposes import quota in order to keep local industries safe from competing with foreign industries and also encourage the production of local goods and services. Thus, it is used as a means of protection.
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