Certified Logistics Technician (CLT) Practice Exam

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What does an import quota refer to?

A fee charged for importing goods

A tax levied on imported items

A limit on the number of products a nation can import

An import quota refers to a limit on the quantity of a particular product that can be imported into a country during a specific time frame. Governments typically impose quotas to protect domestic industries from foreign competition, manage supply levels, and stabilize market prices. By restricting the number of goods that can enter a country, import quotas can help ensure that local manufacturers have a competitive edge and can maintain their production levels without being overwhelmed by low-cost imports.

This mechanism directly impacts trade strategies and can influence the pricing and availability of products within the domestic market. The other provided options describe different trade instruments, such as tariffs or regulations, but do not capture the essence of what an import quota specifically does.

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A regulation on product safety standards

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