Explain the import quota policy in a small nation, using appropriate theories and diagrams. Why WTO...

Explain the import quota policy in a small nation, using appropriate theories and diagrams.

Why WTO substantially limits the legal usage of Import quotas.

Solutions

Expert Solution

Import quotas are not preferred by the WTO because they are more welfare reducing than tariffs. This includes red-tape and other bureaucratic failure such as unnecessary lobbying and accusations of unfair play by the importing country government.

Rahul Sunny answered 8 months ago

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