Question

quotas- a limit on the amount of goods being imported to another country encourage people to buy goods in their home countries

Answer 1

Import quotas are a form of trade control where a country limits the amount of certain goods that can be imported to protect local industries and jobs, as seen in historical examples such as the Reagan Administration's quota on Japanese automobiles and the Multifiber Agreement.

Step-by-step explanation:

Import quotas are restrictions set by a country to limit the number of goods that can be imported. These numerical limitations are a form of trade control used to protect domestic industries from foreign competition, encourage local consumption, and preserve jobs. A historical example is the quota on the import of Japanese automobiles imposed by the Reagan Administration in the early 1980s. Similarly, the Multifiber Agreement from 1974 to 2004 was established by developed countries, including the United States, to manage the decline of domestic textile industries by dividing the market for textile exports between importers and domestic producers. This agreement specified the exact quota of textile imports that each developed country would accept from each low-income country. The United States also controls sugar imports through quotas to protect its domestic industry.