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al., 2002). However, this protection comes with an economic cost, where consumers have to pay a higher price to imported goods, which effectively lowering their buying power and leads to inefficient allocation of resources.
Quota is another form of tariffs where the government restricts the quantity of goods that can be imported into the country. It is usually combine with the use of import taxes, whenever a firm imports a certain goods and it exceed the quota amount, higher tax will be imposed on the remaining goods.
Non-Tariff Barriers to Trade
Non-tariff trade barriers are other mechanism that is used by the government to further protect the domestic industries...
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