Quotas are limits set by governments on the quantity or value of certain goods that can be imported into a country. They aim to control foreign competition and protect domestic industries.
Imagine you're hosting a pizza party, but you only have limited space in your oven. So, you decide to set a quota on the number of pizzas allowed inside. This quota ensures that there's enough room for your homemade pizzas while limiting competition from store-bought ones.
Embargo: An embargo is a complete ban on importing or exporting specific goods with another country.
Dumping: Dumping occurs when companies sell their products in foreign markets at prices lower than their production costs, often harming local producers.
Import substitution: Import substitution is an economic policy that aims to replace imported goods with domestically produced alternatives in order to reduce dependence on foreign products.
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