What is the difference between an import quota and a tariff?

An import quota and a tariff are two different types of international trade laws. An import quota is a numerical limits on the quantity of a specific product that can be brought into a specific country. For example, if there is a quota on the number of cars that can be imported into Florida, then that means only a set amount of cars can be brought into the state. A tariff, on the other hand, is a tax or fee placed on certain goods or services purchased by someone from another country. For example, if someone in Florida buys a car imported from another country, they may need to pay a certain fee or tax, which is the tariff. The main difference between the two is that an import quota imposes a limit on the total amount of a certain product that can be imported into a country, whereas a tariff raises the cost of a certain product brought in from another country. Both of these laws help protect local business and products from foreign competition. It is important to note that tariffs are usually charged on a single product, while an import quota can be a total limit that includes multiple products.

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What is the difference between an import quota and a tariff?

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