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

The difference between an import quota and a tariff is an important concept in International Trade Law, particularly in Georgia. A tariff is a tax imposed on imported goods entering a country. A tariff is paid by the company bringing the goods into the country. The tariff acts as a barrier to entry and encourages domestic production of the same item. An import quota, on the other hand, is a limit on the amount of a certain product that can be imported into a country. These quotas are usually imposed by governments for certain reasons, such as to protect local industries or to protect domestic markets. Unlike tariffs, import quotas do not provide revenue for the government. They limit the amount of certain goods that can enter the country and can initially raise the price of the goods. Overall, the main difference between an import quota and a tariff is that tariffs provide revenue for the government and can help protect local businesses, while import quotas are limits on the amount of certain goods that can enter a country. Both are important concepts for international trade law, particularly in Georgia, and each has its own pros and cons.

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

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