Question

A tiny South Pacific island nation produces large quantities of honey-based products. To protect this industry, the island government mandates that only designated trading companies can import the crop, each of which is allocated the right to import a maximum number of pounds of honey each year. This is an example of a(n)

Answer 1

Import quotaa

Step-by-step explanation:

By import quota, we are talking about a type of trade restriction. This particular type of restriction in trades puts a limit on the number or quantity of a commodity that can be imported into a given country as a particular time. When such types of restrictions are put in place the makers of this type of commodity in this economy benefits.

In this question we can see that Pacific island nation would benefit given that there would be less import of the crop. the restriction on imports would make more buyers turn to them.