Economics Balance Of Trade Questions
Quotas play a role in the balance of trade by restricting the quantity of imports or exports of specific goods or services. They are used by governments to control trade flows and protect domestic industries. By imposing quotas, a country can limit the amount of imports coming in, which can help reduce trade deficits and improve the balance of trade. Additionally, quotas can also be used to limit the amount of exports going out, which can help protect domestic industries from foreign competition and maintain a favorable balance of trade.