5
QuizMultiple Choice

International Trade

Question 5 • W Geography_B_IC

Why are quotas an example of protectionism?

Answer
A
Quotas increase the volume of trade.
B
Quotas remove restrictions on trade.
C
Quotas create trade barriers by limiting imports.
D
Quotas ignore the needs of domestic industries.

Explanation

Protectionism means using policies to shield domestic industries from foreign competition. A quota sets a limit on how much of a product can be imported, creating a barrier to trade. Therefore, quotas are an example of protectionism because they limit imports.

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