An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.
Quotas, like other trade restrictions, are typically used to benefit the producers of a good at the expense of consumers in that economy. Quotas are considered to be less economically efficient than tariffs, which in turn are less economically efficient than free trade.
- ↑ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Pearson Prentice Hall. p. 449. ISBN 0-13-063085-3.