An import quota is a type of trade restriction that sets a physical limit on the quantity of a product that can be imported into the country in a set period of time.
Explanation:
A quota is a government-imposed trade constraint that restricts the number or commercial value of goods that a country can ship or export throughout a distinct period. Countries adopt quotas in international trade to assist improve the volume of trade among them and other countries.
Extremely restrictive quotas linked with high tariffs can begin to trade conflicts and other obstacles within nations. If the amount imported beneath a quota is less than would be shipped in the inadequacy of a quota, the domestic price of the commodity in problem may rise.
