The restrictions in the form of quotas imposed on imports to reduce balance of payments deficit and protect domestic industry is known as:
The restrictions in the form of quotas imposed on imports to reduce balance of payments deficit and protect domestic industry is known as:
Solution
✅ Correct Option: 4
Restrictions on imports imposed in the form of physical limits or quotas, used to reduce the balance of payments deficit and protect domestic industry, are called quantitative restrictions. Tariffs, in contrast, work through taxes on imports rather than quantity limits.
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