Final answer:
Quotas are predefined limits on imports, not case-by-case permissions, thus the statement is false. They impact economies by balancing protection for local industries with potentially higher prices for consumers. The specific impacts depend on the size of the quota.
Step-by-step explanation:
The statement that quotas strictly permit importing on a case-by-case basis is false. Quotas usually refer to the predetermined limits on the amount or volume of goods that can be imported or exported. Once these limits are reached, no further imports of that specific good are allowed until the next specified period. For instance, if a country specified the exact quota of textile imports, it has effectively determined the maximum amount of textiles that can be imported from each low-income country during a given time frame, not on a case-by-case basis. This is also exemplified by the sugar imports into the United States, which are controlled by set quotas rather than being evaluated individually for each importation case.
Having an import quota can impact both the consumer and producer economies. If the Land of Submarines imposes an anti-dumping import quota of 30, it is intended to protect domestic production by limiting foreign competition, which may benefit local producers and potentially harm consumers through higher prices. Conversely, an import quota of 70 has a different magnitude of impact, potentially allowing more imports at competitive prices, which might benefit consumers but provide more competition for local producers.