quota

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Quota

Quota

1. The amount a country contributes to finance the International Monetary Fund. The IMF determines quota based upon how much each country contributes to the global GDP. Each country's quota also influences its voting power in matters of IMF governance. Larger countries both contribute and vote more. The quota system has proven to be controversial, as it gives smaller and less prosperous countries a lesser voice.

2. The most barrels of oil an OPEC member state may produce per day. OPEC sets quotas in order to influence the price of oil. It raises quotas when it wishes to lower the price and lowers them when wishes to increase the price.

3. Any minimum or maximum limit, especially one imposed by an authority. For example, a journalist may be required to write a minimum quota of articles per week, or an employee may not be allowed to work more than the maximum quota of hours to avoid charging his company overtime.

4. See Import quota.

quota

A maximum or minimum limit on quantity. Applied to imports, a quota designates the maximum quantity of a product that may be brought into a country during a specified period of time. Quotas can have significant impact on certain industries and companies. The establishment of a quota or a change in an existing quota can influence the price of the affected firm's securities. See also tariff, trigger price.

quota

an administrative limitation on the production of, or trade in, a particular product imposed by suppliers or by the government.
  1. Producers' CARTELS typically place a limitation on the total output of a product so as deliberately to restrict its supply to a predetermined level and then use a quota system to allocate output between member firms;
  2. Trade quotas are imposed by governments as a means of restricting IMPORTS of a product to a specified level in order to protect domestic producers (see PROTECTIONISM) and assist the country's BALANCE OF PAYMENTS, or, alternatively, they can be used by exporting countries as a means of restricting exports. Unlike TARIFFS where suppliers may be prepared to absorb the duties imposed in order to maintain their sales, quotas reduce the volume of foreign sales in the home market and in some cases may completely deprive a firm of access to the market. For this reason MULTINATIONAL ENTERPRISES may set up a local manufacturing plant to replace exports to the market. See FOREIGN MARKET SERVICING STRATEGY, LOCAL CONTENT RULE.

quota

an administrative device to limit
  1. output or
  2. trade.
  1. Under a producer's CARTEL arrangement, each supplier is given a fixed output to produce. Quotas are used by the cartel to establish monopoly prices by ensuring that the total of the firms’ output quotas is restricted relative to market demand;
  2. Under a trade quota system, the government directly restricts the volume of permissible IMPORTS to a specified maximum level (the import quota) in order to protect domestic industries against foreign competition. As a protectionist device, a quota is much more effective than TARIFFS, especially when import demand is price-inelastic (when import demand is price-inelastic, increasing import price has little effect on the volume of imports). In these cases the only certain way of limiting imports is physical control. See also PROTECTIONISM.
References in periodicals archive ?
The third category comprises the countries which were having trouble fulfilling their export quotas anyway; it includes the Ivory Coast and Angola.
For example, eight out of 22 cane sugar refineries have gone out of business since the latest, most restrictive sugar quotas became law in 1981.
Synygy's software and services include solutions for managing sales territories and channels, sales talent, sales quotas and objectives, sales compensation, sales metrics and analytics, sales data processes, sales reports and analyses, and sales communications.
On September 10, 2012, the Executive Board of the International Monetary Fund (IMF) reviewed progress toward implementation of the 2010 Governance and Quota Reform Package.
Prior to last week's OPEC meeting, Saudi Arabia said it would be happy just to continue the 30 million quota.
Mariann Fischer Boel, Commissioner for Agriculture and Rural Development, said: "Despite the increase in quotas in 2008/09, production was almost unchanged from the year before.
Nevertheless, there are some very important debates to be had about how the ending of the regime is brought about and what happens once quotas are gone.
OPEC abandoned its country-by-country quotas in December 2011 and just kept an overall total production ceiling of 30 million barrels a day, which remains in effect today.
The voice and quota reforms in IMF WB are an ongoing process.
According to national declarations for the year ending March 31, 2013, Austria, Germany, Denmark, Poland and Cyprus exceeded their national quotas by a total of 163 700 tons, despite the 1% quota increase in the year 2012/2013 decided in the framework of the 2008 CAP Health Check.
The European Commission announced reductions in quotas this year for member states that had exceeded their quotas in 2012.
Bulgarian Agriculture Minister Miroslav Naydenov, who is in Brussels, has succeeded in convincing his colleagues to withdraw the proposal for reducing the quotas, the ministry announced.