Quotas Definition
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Question (English)
'Quotas' in international trade specify:
- Tax rate on imports
- Quantity of goods which can be imported ✓ Correct
- Subsidies for exporters
- Foreign exchange reserves
Explanation:
Correct Answer Explanation
Quotas specify the quantity of goods which can be imported.
Key Points:
- A form of quantitative restriction on imports.
- Combined with tariffs, formed India's import substitution policy.
- Based on the notion that developing industries could not compete with developed economies.
📚 About this Topic — CH-2: INDIAN ECONOMY 1950–1990
This multiple choice question is from CH-2: INDIAN ECONOMY 1950–1990, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-2: INDIAN ECONOMY 1950–1990 to strengthen your preparation.
