Question

Animax Limited got an order to sell 50,000 central processing units (CPUs) to Palladia, but the Palladian government stipulated that 15 percent of the component parts of those CPUs must be produced in Palladia. This stipulation by the Palladian government would be example of a(n):____________.

A. voluntary export restraint.
B. quota rent.
C. import quota.D. local content requirement.
E. antidumping policy.

Answer 1

C. Import quota

Step-by-step explanation:

Animax Limited got an order to sell 50,000 CPUs to Palladia with the restriction imposed by the Palladian government that 15 percent of the component parts of those CPUs must be produced in his country could be an example of Import Quota. It refers to a physical limit on the quantity of a good that can be imported into a country in a given period of time to provide benefits to the producers of a good in that economy as here Palladian government imposed the restriction so that his economy gets benefited.