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

The difference between an import quota and a tariff is determined by international trade law in North Carolina. An import quota is a limit placed on the amount of goods that can be imported into the United States from a particular country. This limit is usually set by a government in order to protect domestic markets. For example, the United States will sometimes place quotas on foreign cars to ensure that domestic automakers remain competitive. A tariff, on the other hand, is a tax placed on goods that are imported from another country into the United States. The purpose of a tariff is to make foreign goods more expensive, which encourages consumers to purchase more of the domestic product. Tariffs are usually placed on certain products and are used by governments to protect domestic industries. In summary, both an import quota and a tariff are tools used by governments to help protect domestic markets. An import quota limits the amount of goods that can be imported into the United States from a particular country, while a tariff is used to make foreign goods more expensive, encouraging consumers to purchase more of the domestic product.

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

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