The Fundamental Difference Between Quotas and Import Licenses Is That

question 37

Multiple Choice

The fundamental difference between quotas and import licenses is that:

• A) import licenses have greater flexibility than quotas.
• B) quotas impose specific limitations on trade and import licenses take care of standards.
• C) quotas are imposed on export goods and import licenses are imposed on import goods.
• D) for quotas the exporting country sets the limits but licenses are issued by the importing country.
• E) unlike licenses, quotas limit quantities on a case-by-case basis.

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