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Import quota

Former userFormer user4y ago
in the context of international trade, which TWO of the following are effects of an import quota? 1.Both domestic and foreign suppliers receive a higher price for their goods 2.Domestic producers suppy more goods to the market 3.The volume of imports increases 4.Government revenue increases Is 2 and 1 correct plz explain
MikeLittleMikeLittleTutor4y ago#1
Look at it from the point of view of 3 and 4 If there's an import quota, its improbable that the volume of imports will increase. Surely one of the reasons for establishing an import quota is to ... put a quota (ie, a limitation) on the volume of imports Why would government revenue increase? I don't see a connection. In my simple mind, an increase in government revenue is as relevant as a decrease in the annual rainfall following the establishment of import quotas OK?
Former userFormer user4y ago#2
Thank u so much
MikeLittleMikeLittleTutor4y ago#3
Safiya, when I look at this page, it's to see if there are any outstanding questions that I have not yet answered The easiest way is to check that my name is the last one on the thread Now, I appreciate the thanks that you regularly give me - it's nice to be appreciated But I'm now in the third of a string of your posts and these first three have all said the same 'Thank you so much' But for my name to appear last in the thread means that I have to respond and that takes up my time unnecessarily So, if all you wish to say is 'Thank you' please accept that I will assume your sentiment without you needing to actually post it Thanks
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