Import Quota System

An import quota system is a trade policy that restricts the quantity of specific goods that can be imported into a country over a certain period. By setting limits on imports, governments aim to protect local industries, manage trade balances, and promote domestic production. This system can lead to higher prices for consumers, as limits on imported goods can reduce competition. Import quotas are often used alongside tariffs (taxes on imports) to control the flow of foreign products and support the economy. They are a tool for balancing international trade and protecting national interests.