A direct restriction on the quantity of a particular good that may be brought into a country during a specified period. This trade barrier sets a physical limit, not a financial one like a tariff, on the amount of a product allowed to enter. For instance, a nation may limit the quantity of imported sugar to a fixed tonnage per year. This is different from tariff. Tariff is a tax levied upon goods as they cross national boundaries, usually by the government of the importing country.
Such a limitation offers domestic producers protection from foreign competition by artificially limiting the supply of the imported item, thereby potentially increasing its market price. This can encourage domestic production and safeguard local jobs. Historically, governments have employed these restrictions for various reasons, including protecting nascent industries, preserving strategic sectors, or addressing trade imbalances. This limitation is effective, and simple.
