Unformatted text preview: A tariff is a tax that one country sets on the imported goods or services of another nation. A quota is a kind of trade restriction meant to protect the country’s interests that a nation sets on the amount of a good that can be imported into a nation in a set period of time. The historical implementation of tariffs and import quotas in the United States economy has meant to serve as a tool for controlling the amount of import goods that enter the country and to determine which countries will be allowed the most constructive trading circumstances. These protectionist trade tools are meant to guard the country’s economic interests as well as establish relations with particular nations. However, critics of these trade tools argue that tariffs and quotas often lead to corruption, such as with smugglers seeking to escape tariffs and/or circumvent quotas, and high...
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- Spring '10