Quota as a Trade Restriction

Steps:

• Recall that international trade barriers include tariffs and non-tariff measures.
• Identify quotas as non-tariff barriers that control import volumes.
• Match the definition to options: quotas set specific limits on goods entering a country.
• Eliminate mismatched options like taxes or grants.

Why C is correct:

• A quota is defined by the World Trade Organization (WTO) as a direct limit on the quantity or value of imports allowed into a country over a period.

Why the others are wrong:

• A: This describes a subsidy, which supports domestic production, not trade limits.
• B: This refers to non-tariff barriers like standards, not quantity restrictions.
• D: This is a tariff, a tax imposed on imports to raise revenue or protect industries.

Final answer: C