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Simple English definitions for legal terms
export quota
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A quick definition of export quota:
Export Quota: A limit on the amount of products that can be sold to other countries. The government can set these limits for different reasons, like protecting national defense or keeping prices stable. Import quotas are limits on the amount of products that can be brought into a country from other countries. The President can set these limits if a product could harm a domestic industry.
A more thorough explanation:
An export quota is a restriction on the amount of products that can be sold to foreign countries. This means that a country can only export a certain amount of a particular product to other countries.
For example, the United States government may establish an export quota on certain products for various reasons such as national defense, price support, and economic stability. This means that only a limited amount of that product can be sold to other countries.
Another type of quota is an import quota, which is a restriction on the volume of a certain product that can be brought into the country from a foreign country. For instance, the President of the United States may establish an import quota on an item that poses a threat of serious injury to a domestic industry.
Overall, quotas are used to regulate trade between countries and protect domestic industries from foreign competition.