CA Foundation · Business Economics · International Trade
Which of the following is a non-tariff barrier that directly limits the physical quantity of a good that may be imported?
An import quota is the correct answer. It sets a legal ceiling on the quantity of a good that may enter the country in a given period, thereby restricting volume directly, whereas duties act only by raising the price of imports and subsidies support exports.
- ASpecific duty
- BImport quotaCorrect
- CAd valorem duty
- DExport subsidy
Explanation
An import quota fixes a maximum quantity of a good that can be imported in a period. Specific and ad valorem duties work through price by taxing imports, not by capping volume. An export subsidy promotes exports and does not restrict imports.
Did you get it right without looking?
One question tells you little. A timed set on International Trade shows your real accuracy, how long you take and where you lose marks.
More International Trade questions
- In India, 1 hour of labour produces either 6 metres of cloth or 3 kg of tea. In Sri Lanka, 1 hour produces either 2 metres of cloth or 2 kg …
- In India, a 10% ad valorem import tariff is imposed on a machine whose landed price (before duty) is ₹8,00,000. A domestic buyer, Mehta Engi…
- India's Mehta Textiles imports cotton yarn with a landed price of ₹400 per kg. The government imposes an ad valorem import duty of 15%. Dome…
- Which of the following will be recorded as a debit item in the current account of India's balance of payments?
- Which of the following best describes a tariff in the context of international trade?
- Amrita Industries exports textiles to Bangladesh. The rupee appreciates against the Bangladeshi taka. In terms of international competitiven…