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Showing posts with the label point wise difference between quota and tariff

QUOTA Vs TARIFF

QUOTA VERSES TARIFF MEANING Tariff : Tariff refers to the tax levied on import or export of goods. Quota : Quota refers to the restrictions imposed on the quantity                  of goods imported. Effect on GDP Tariff : Increases GDP Quota : Decreases GDP INCOME Tariff : To Government Quota : To importer RESULTS IN Tariff : Fall in consumers surplus and rise in producers surplus Quota :  Fall in consumers surplus