Question
An import quota is not the simplest instrument for implementing a policy of tariff barriers.
Answer :
Word Count : 369
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An import quota is a quantitative restriction that limits the volume or value of a particular good that can be imported into a country during a specified period. Although it serves the purpose of restricting imports and protecting domestic industries, it is not the simplest instrument for implementing a policy of tariff barriers in the international business environment. Tariffs are generally considered simpler because they operate through the price mechanism. By imposing a tax on imported goods, the government increases their price in the domestic market. This discourages excessive
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