Quota
Quota is the maximum quantity of a commodity allowed to be imported in one financial year. The government fixes the quota after taking into consideration the demand for the commodity in the domestic economy minus our own production. The quota is adjusted to suit changes in our requirements or our own production.
The quota is classified into global quota and allocated quota.
Under the global quota a particular quantity is allowed to be imported in one financial year. The people are free to import it from any country they like.
Under the allocated quota the total quantity to be imported is allocated between different countries. A particular quantity must be imported from a particular country.
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