Difference between Tariffs and Quotas?


The difference between tariffs and import quotes is that a tariff is a tax that is on imports. Meanwhile, an import quote just limits the amount of a certain thing that can come into a country. They are both measures that are used in order to protect the economy of the country by restricting international trade.
Q&A Related to "Difference between Tariffs and Quotas?"
Tariffs are taxes, or the amount of money a country needs to pay for trading products. Quotas are the limitations on what is traded, how much is traded, how much is paid for each
A tariff is a tax imposed on an imported good. In some cases, the taxes are so exorbitant that no buyer wishes to import them overseas, and the buyer must seek local vendors to supply
A quota is a limit on the number of imports of a certian product
One of the differences between a tariff and a quota is that a tariff creates revenue for the government, while a quota creates rents for sellers.
1 Additional Answer
Ask.com Answer for: difference between tariffs and quotas
What Is the Difference Between Tariffs & Import Quotas?
If a company wishes to export 5,000 shoes to a nation with strict trade policies, the government may impose a tariff or a quota on the business. Though both of these trade limitations inhibit the free flow of goods and services between borders, these... More »
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Source: www.ehow.com
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