The maximum limit set on the amounts of goods that may be imported into a country is known as a quota.
A quota is a type of trade restriction that limits the number or value of goods that can be imported or exported during a specific time period. It is used by governments to control the volume of trade between countries and to protect domestic industries from foreign competition.
There are different types of quotas, including:
- Import Quotas: These restrict the quantity of goods that can be imported into a country.
- Export Quotas: These limit the quantity of goods that can be exported from a country.
Quotas are different from tariffs, which are taxes imposed on imported goods. While tariffs increase the cost of imported goods, quotas directly limit the quantity of goods that can enter a country.
In summary, a quota is a direct restriction on the amount of goods that can be imported or exported, and it is one of the tools used by governments to regulate international trade.