Import quota

This topic has 3 replies, 2 voices, and was last updated 2 months ago by MikeLittle.

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March 31, 2022 at 10:48 am #652396
Safiya.12345
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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
April 1, 2022 at 4:56 pm #652531
MikeLittle
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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?
April 10, 2022 at 6:05 pm #653010
Safiya.12345
- Topics: 46
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Thank u so much
April 10, 2022 at 8:23 pm #653026
MikeLittle
Keymaster
- Topics: 26
- Replies: 22557
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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