Question

The U.S. government assigns specific amounts of sugar imports that can come from 40 nations. What type of quota does this represent

Answer 1

The type of quota that the U.S. government assigns for specific amounts of sugar imports from 40 nations is a tariff-rate quota (TRQ).

A tariff-rate quota is a two-tiered tariff system used in economics to manage import products by combining import quotas and tariffs. A TRQ mandates a higher tariff rate for imports of a certain commodity in excess of a predetermined quantity while allowing a lower tariff rate within that quantity.