Practicing Success
What do you understand by the term "Quotas" which is used for restricting imports in a country? |
Reduction in the quality of imported goods Tax on imported goods Limit set for importing the goods None of the above |
Limit set for importing the goods |
India adopted import substitution policy often called as "Inward looking trade strategy". Protection from imports took two forms: tariffs and quotas. Tariffs are a tax on imported goods; they make imported goods more expensive and discourage their use. Quotas specify the quantity of goods which can be imported. The effect of tariffs and quotas is that they restrict imports and, therefore, protect the domestic firms from foreign competition. |