quotas and tariffs

Question 1

define quota

Answer 1

a limit on the number of items that can be exchanged between countries

Question 2

define tariff

Answer 2

a tax an importer has to pay to trade particular goods in a country

Question 3

why would a country set quotas

Answer 3

To limit the amount of goods exporters can sell in a year. This is to protect local businesses and reduce foreign competition

Question 4

in what way are tariffs similar to quotas

Answer 4

they are imposed to protect local businesses

Question 5

how do tariffs help smaller local businesses grow

Answer 5

They make foreign goods comparatively more expensive allowing them to put their products at a cheaper price.