Question

How do quotas help domestic producers? quotas fwhat term describes a ban or restriction on trade with another country?acilitate increased exports of domestic goods. quotas lower the cost of domestic goods. quotas limit the number of producers that compete in a sector. quotas facilitate the sale of more domestic goods.

Answer 1

Import quotas help domestic producers by limiting competition from foreign producers and creating a more favorable market environment for domestic goods.

Step-by-step explanation:

Import quotas are numerical limitations on the quantity of products that a country can import. They are a form of protectionism, which is the practice of restricting trade in order to protect domestic industries.

Quotas help domestic producers by limiting the competition they face from foreign producers. This allows domestic producers to sell more of their goods in the domestic market, leading to increased sales and profits.

For example, if a country imposes a quota on imported cars, it limits the number of foreign cars that can be sold in the domestic market. This creates an opportunity for domestic car manufacturers to increase their sales and market share. As a result, domestic producers benefit from increased demand for their goods and may be able to expand their production capabilities.

Overall, quotas help domestic producers by reducing competition from foreign producers and creating a more favorable market environment for domestic goods.