Question

i. Explain how this would work to accomplish the US objective. b. Identify 3 cases where the US has imposed import quotas on another country and explain why they were implemented.what is an import quota?????

Answer 1

Import quota is a non-tariff barriers used by the countries to bring trade restrictions so that the domestic producers are protected and jobs are saved in the economy. Under the import quotas, there is cap upon the import from the another country towards an import of particular types of goods.

Three cases of the USA applying the import quotas upon the other countries are as follows:

1. The import quota upon the import of textile from china. It took place to protect the domestic textile industry. Chinese textile were cheap and it could destroy the domestic industry of textile, causing huge job losses to the people of the USA. So, quota was applied to protect the domestic industry.

2. Import quotas upon the import of steel and Aluminum from China and other major foreign exporters by the Trump administration. The same reason of protecting the industries at the domestic level.

3. Non-tariff import restriction upon the import of agricultural produce from Mexico, though the country of Mexico is the part of NAFTA. The cost of production of agriculture produce is less than that of the USA. So, it has the ability to destroy the agriculture of the USA and its farmers. Hence, a limitation is applied to protect the domestic agricultural producers.

Above import quotas help to achieve the following objectives:

1. It helps to protect the domestic industry.
2. It is intended to save jobs in that sector.
3. It controls the impact of other nations upon the domestic economy.
4. It helps in maintaining social harmony due to balance in aggregate demand and supply.