Absolute Quota:
Noun
1. A fixed and unchangeable limit or restriction imposed by a governing body or organisation on the quantity or number of a specific item, product, or resource that can be imported, exported, produced, or consumed within a given time period.
2. A predetermined and non-negotiable quantity or number set by a regulatory authority to control and manage the supply and demand of goods or services, often used to protect domestic industries, regulate trade, or maintain market stability.
3. A measure implemented to ensure a fair distribution of limited resources or opportunities, typically used in contexts such as employment, education, or government programs, where a specific number or percentage of individuals from a particular group or category are granted access or participation.
Absolute quota refers to a type of trade restriction that limits the quantity of a particular product that can be imported into a country. This type of quota is fixed and does not change based on market conditions or demand. Absolute quotas are often used to protect domestic industries from foreign competition and can be imposed unilaterally by a government or as part of a trade agreement. Violating an absolute quota can result in penalties or fines.
Q: What is an absolute quota?
A: An absolute quota is a type of trade restriction that sets a specific limit on the quantity of a particular product that can be imported or exported during a given time period.
Q: How does an absolute quota differ from a tariff?
A: While a tariff imposes a tax on imported goods, an absolute quota directly limits the quantity of goods that can be imported or exported, regardless of the price.
Q: Why are absolute quotas implemented?
A: Absolute quotas are often used to protect domestic industries by limiting foreign competition, preventing the flooding of the domestic market with cheap imports, and maintaining a balance of trade.
Q: How are absolute quotas determined?
A: The determination of absolute quotas can vary depending on the country and the specific product. They can be based on historical trade patterns, negotiated agreements, or set unilaterally by the government.
Q: What happens if the absolute quota is exceeded?
A: If the absolute quota is exceeded, additional imports or exports of the product will be prohibited or subject to penalties, such as higher tariffs or fines.
Q: Can absolute quotas be changed or removed?
A: Yes, absolute quotas can be modified or eliminated through negotiations between countries, changes in trade policies, or as a result of international agreements.
Q: Are absolute quotas used in all countries?
A: No, not all countries use absolute quotas. Some countries may prefer other trade restrictions, such as tariffs, subsidies, or voluntary export restraints.
Q: Do absolute quotas always benefit domestic industries?
A: While absolute quotas are intended to protect domestic industries, their impact can vary. They may provide short-term benefits by limiting competition, but in the long run, they can hinder innovation, increase prices for consumers, and reduce overall economic efficiency.
Q: Can absolute quotas be challenged under international trade rules?
A: Yes, absolute quotas can be challenged under international trade rules, such as those established by the World Trade Organization (WTO). Countries can file complaints and seek resolution through dispute settlement mechanisms.
Q: Are there any alternatives to absolute quotas?
A: Yes, there are alternative trade restrictions that can be used instead of absolute quotas, such as tariff-rate quotas, which combine elements of both tariffs and quotas, or voluntary export restraints, where exporting countries agree to limit their exports voluntarily.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/absolute-quota/
- Modern Language Association (MLA):Absolute Quota. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/absolute-quota/.
- Chicago Manual of Style (CMS):Absolute Quota. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/absolute-quota/ (accessed: May 09 2024).
- American Psychological Association (APA):Absolute Quota. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/absolute-quota/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts