Describe the concept of quotas as non-tariff barriers.

Describe the concept of quotas as non-tariff barriers.

Quotas are a type of non-tariff barrier that restricts the quantity or volume of goods that can be imported or exported between countries. They are typically set by the government or regulatory authorities and are used to limit the amount of foreign goods entering a domestic market. Quotas can be implemented for various reasons, such as protecting domestic industries, maintaining national security, or addressing trade imbalances. By limiting the quantity of imports, quotas aim to control competition from foreign producers and safeguard domestic industries. However, quotas can also lead to higher prices for consumers, reduced product variety, and potential retaliation from trading partners.