Analysis of the Effects of Import Quotas

Abstract

Quotas are one of the oldest and mostly applied non-customs barriers. They are most often applied when there are important balanced disruptions of payment because their effects are most quickly and completely carried out. There are import and export quotas depending on whether it is the import or the export of the country that is regulated. The countries more often apply import quotas in order to protect the domestic producers from foreign competition whereas the export quotas are more rarely used because the aim of all countries is to promote their own export. The quotas in the developed countries are mainly used for protection of the agricultural producers whereas the developing countries tend to use the quotas for protection of the young industries from foreign competition till the moment when the same have to become competitive on the world market. The effects of quotas on the other economic categories are primarily determined by the method of their distribution.