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quota
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   Also found in: Dictionary/thesaurus, Medical, Legal, Financial, Encyclopedia, Wikipedia 0.01 sec.

quota

In international trade, a form of protectionism, limiting the amount of a commodity that may be exported, imported, or produced. Restrictions may be imposed forcibly or voluntarily.

The justification for quotas may include protection of a home industry from an influx of cheap goods, prevention of a heavy outflow of goods (usually raw materials) because there are insufficient suppliers to meet domestic demand, allowance for a new industry to develop before it is exposed to competition, or prevention of a decline in the world price of a particular commodity.



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