What is the difference between an import quota and a tariff?
An import quota and a tariff are two different types of international trade restrictions. A quota is a limit placed on the amount of a good that can be imported into a country, while a tariff is a tax placed on imported goods. In Oklahoma, an import quota is a numerical restriction set by the government on the amount of imported goods that can be brought into the state. It sets a limit on the total number of goods that can enter the state. For example, the state government could set a limit on how many tons of foreign-made coffee beans could be imported each year. A tariff, on the other hand, is a tax placed on imported goods that increases their price. When the tariff is applied to imported goods, they become more expensive for the consumer, often resulting in reduced demand for those goods. Tariffs are put in place to increase the cost of imported goods and make it more difficult to compete with domestic products. So the main difference between an import quota and a tariff is that a quota sets a limit on the total amount of goods that can enter the state, while a tariff increases the price of the imported goods. Both of these international trade restrictions are regulated by International Trade Law and are used to protect and promote domestic production and protect jobs and wages in Oklahoma.
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