Tax on imports is one type of trade barrier. The government could also place a limit on the number of goods that can be imported. This is known as quotas. Can you explain, using the example of Chinese toys, how quotas can be used as trade barriers? Do you think this should be used? Discuss.
Answers
Answered by
23
Answer:
If you are importing a fixed quantity, then it is called as quota. This is usually done by Chinese people while selling toys. This will have both positive and negative effect. If there are trade restrictions, it becomes easy for Indian toys to be sold in the market.
This helps the Indian toys to have bigger market in the country and produce employment. You can get the quality toys at cost-effective prices. This point is scraped in case of Chinese toys.
Explanation:
Similar questions