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 ?
Iran sought to resurrect OPEC's country-by-country quotas at the group's last meeting in Vienna, the Iranian oil news agency Shana reported Saturday.
He said that the Religious Affairs Ministry did not allot Haj quota to new HGOs and it was reason for costly Haj.
Separately, in 2012, KIA received a USD one billion quota under another program managed by China's central bank to invest in the domestic interbank bond market.
From there, it would be extremely challenging to gain the remaining required votes, especially considering that several men who publicly endorsed the 30% quota later rejected it when it was time to vote.
The dairy quota system was introduced in the 1980s in order to address problems of surplus production.
The European Commission announced reductions in quotas this year for member states that had exceeded their quotas in 2012.
For sprat, the Commission has already announced it would keep the EU quota unchanged, at 11,475 tonnes.
She insisted that a rejection of quotas was "good for business and ultimately good for women too".
Several member states produced far below their respective national quota; 10 Member States recorded deliveries at least 10% below their quota.
The committee recommended that inductions be made in FBR on the basis of provincial quota rather than regional quota basis so that implementation of provincial quota could be ensured.
And so the quota genie was unleashed, ironically by an upper caste man and a royal to boot.
Interestingly, this year's announcement differs from previous years by providing a full year target quota rather than six month quotas and by defining separate quota allocations for light rare earth elements (LREs) and medium / heavy rare earth elements (MREs/HREs), evidently in an effort to better balance the export market.