quota

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Quota

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
'The additional quota provided by China will help balance Cambodian rice exports to the international market,' he said.
He said that since the employment quota had expired in 2013, it should have been extended through constitutional amendment without any delay.
The of Scottish Fishermen's Federation chief executive Bertie Armstrong said: "Once again Greenpeace are guilty of painting a completely false picture of the UK fishing industry to match their particular prejudices." The Scottish Government said fish quotas "must be managed for the common interest and to ensure the sustainability of stocks".
Briefing the cabinet on the existing quota, the secretary Establishment Division said that special dispensation was given to Balochistan and its share was enhanced from 3.5% to 6%.
Lebanese Forces Secretary-General Chantal Sarkis also said that current discussions were not focused on women's quotas. But she did not deny that the issue is on the agenda.
OTE recalled that in 2013 the fact that the peak of Tunisian olive oil exports to the EU coincided with a minimal monthly quota explains that Tunisia has not been able to exhaust the entire annual quota with 36% of exports actually exempted from customs duties.
CNOOC, which holds less refining capacity, won a quota for 15,000 tonnes as an "experiment", said the third source, who has direct knowledge of CNOOC's trade operations.
Mega Plus includes five different bundles that start from EGP 100 at 1Mbps speed and a 100GB quota.
Iran's OPEC governor, Hossain Kazempour-Ardabili, sent a letter to the group's secretariat before the meeting proposing "a technical price formula that can resurrect the quota system and also prevent prices from falling," Shana reported.
According to this year's figures, Austria overshot its milk delivery quota by 3.6%, triggering a levy of some 29 million, while Germany (7 million), Denmark (5 mn), Poland (4 mn) and Cyprus (343,000) also face significant penalties.
The number of Member States exceeding their quotas remains limited and the concerned surplus production accounts for 0.1% of all milk delivered or covered by direct sales (0.2% in the previous milk quota year).
The countries most impacted by the European Commission's quotas include Spain, Great Britain, Ireland, Poland, and Portugal who have each faced reductions amounting up to hundreds of tonnes of various fish.