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What is Quota?

Quota: A limit on how much of a good can be imported.

Where Quota fits

Quota is part of Trade & Currency in Global Trade. Trade connects economies through exports, imports, tariffs, quotas and trade agreements. Comparative advantage says countries should specialize in what costs them least.

Practical tip

Check duties, rules and currency risk before entering a market.

Related terms

Tariff
A tax on imported goods.
Exchange rate
The price of one currency in another.
Trade deficit
Imports exceed exports in a period.
GDP
Total value of goods and services a country produces in a period.
Export
Selling goods or services to buyers in another country.
Import
Goods brought in from another country.
Free trade agreement
A deal that removes most trade barriers between countries.
Customs duty
A tax collected on imported goods.

Formulas you will use with it

Trade balance

Test yourself

Which term means: “A limit on how much of a good can be imported.”?

Export · Customs duty · Quota

Answer: Quota

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