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Simple English definitions for legal terms
import quota
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A quick definition of import quota:
Import Quota: A limit on the amount of a certain product that can be brought into a country from another country. This is done to protect domestic industries from foreign competition. For example, if too many cars are being imported from another country, the government may establish an import quota to limit the number of cars that can be brought in.
A more thorough explanation:
An import quota is a restriction on the amount of a certain product that can be brought into a country from a foreign country. This means that only a certain amount of the product can be imported, and anything beyond that amount is not allowed.
- The United States may establish an import quota on steel from China if it is determined that the steel is being sold at unfairly low prices, which could harm the domestic steel industry.
- Japan may establish an import quota on rice from Thailand to protect its own rice farmers from competition.
These examples illustrate how import quotas can be used to protect domestic industries from foreign competition. By limiting the amount of a certain product that can be imported, the government can help ensure that domestic producers are not unfairly harmed by foreign competition.