Economics Protectionism Questions
The role of quotas in protectionism is to restrict the quantity of imported goods or services that can enter a country. Quotas are a form of trade barrier that limit the amount of foreign products allowed into a domestic market. By imposing quotas, governments aim to protect domestic industries from foreign competition, maintain domestic employment, and reduce reliance on imports. Quotas can be set in various forms, such as absolute quantity limits or percentage-based restrictions, and they are often used in conjunction with tariffs or other protectionist measures.