Question

How do quotas help dowhat term describes a ban or restriction on trade with another country?mestic producers? quotas facilitate 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, such as numerical limitations on the quantity of imports, can help domestic producers by limiting competition, facilitating the sale of more domestic goods, and potentially lowering their costs.

Step-by-step explanation:

Import quotas, which are numerical limitations on the quantity of products that a country can import, can help domestic producers in several ways. One way is that quotas limit the number of producers that compete in a sector. By restricting the amount of foreign goods that can be imported, quotas reduce competition for domestic producers, allowing them to enjoy higher demand for their products and potentially earn more profits.

Another way quotas help domestic producers is by facilitating the sale of more domestic goods. When there is a limit on imports, domestic producers can capture a larger share of the market, leading to increased sales and revenue. Additionally, quotas can lower the cost of domestic goods by reducing competition from cheaper foreign goods, which may encourage domestic producers to lower their prices.

Overall, import quotas provide a level of protection for domestic producers by limiting competition and helping them maintain or increase their market share.