Trade Restriction: Import Quota

Steps:

• Identify the policy: A government sets a numerical limit on smartphone imports at 2 million units.
• Recall definitions: Match the limit to standard international trade terms like ban, embargo, quota, or tariff.
• Analyze the limit: It restricts quantity without prohibiting or taxing imports.
• Select the term: The quantity cap directly defines a quota.

Why C is correct:

• A quota is a government-imposed limit on the quantity or value of goods that can be imported, as defined in trade economics, precisely matching the 2 million smartphone cap.

Why the others are wrong:

• A. Ban: Prohibits all imports entirely, not a specific quantity limit.
• B. Embargo: A complete trade ban against a specific country for political reasons, not a quantity restriction.
• D. Tariff: A tax on imports to raise revenue or protect domestic industries, not a volume limit.

Final answer: C