In Contrast to a Tariff a Quota Does Not

Thus quota is a quantitative limit through imports. The main difference is that quotas restrict quantity while tariff works through prices.

Are Tariffs And Quotas Equivalent In Their Economic Effects

Quotas are similar to tariff.

. In economics a tariff-rate quota TRQ also called a tariff quota is a two-tiered tariff system that combines import quotas and tariffs to regulate import products. A TRQ allows a lower tariff rate on imports of a given product within a specified quantity and requires a higher tariff rate on imports exceeding that quantity. Such a situation is called prohibitive tariff.

For example a country might allow the importation of 5000. In fact they can be represented by the same diagram. Consequently imports would drop to zero.

Effect Of Import Quotas Economics Help

Quotas And Tariffs

Difference Between Tariff And Quotas With Diagram

Quotas And Tariffs