Final answer:
A maximum limit on the quantity of a foreign-produced good allowed into a country is called a quota. These are a form of protectionism, often raising domestic prices while protecting certain industries.
Step-by-step explanation:
A specification of a maximum amount of a foreign-produced good that will be allowed to enter a country over a given time period is referred to as a quota. Import quotas are numerical limitations on the quantity of products that a country can import. They are a form of protectionism, which can lead to higher prices for consumers and potentially less overall trade. For example, the United States has utilized import quotas in the past for products like textiles and Japanese automobiles to protect domestic industries. However, while quotas may benefit certain domestic producers, they tend to reduce efficiencies in the market and can lead to a net loss for both domestic consumers and foreign suppliers.
An embargo refers to a specification of a maximum amount of a foreign-produced good that will be allowed to enter the country over a given time period. It is the most radical form of trade restriction and completely forbids trade, either in all goods or in certain goods. This policy reduces or prevents trade and has a clear negative impact on consumers and suppliers.