quota


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Related to quota: Import quota

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 ?
On the other hand, the federal cabinet had decided last year to keep the quota for government at 67% and for private tour operators at 33%, Masood said.
This is a right," Ogasapian said, underscoring that such a quota should only be required for a transitional period.
In 2014, even though the level of exports was very low, due to the bad 2013/2014 season, the EU refused to grant the quotas requested by Tunisia, which nevertheless respected the annual and monthly limits set by the regulation.
Lau said Sunvim has already allocated its quota to committed programs with U.S.
The permanent secretary said further that the ministry was also collaborating with the Corporate Affairs Commission, the Central Bank of Nigeria, among others, to improve the integrity of the entire expatriate quota process.
Justice Azmat Saeed remarked NAB is of the view that the minister allotted quota on his discretion.
According to the Supreme Court's verdict, the quota must be distributed fairly, they said, however, the opposite is happening in the ministry.
He pointed out that the quota was allocated between the government and private tour operators with a percentage of 60 and 40, respectively.
He submitted that Saudi government reduced Hajj quota by 20 per cent due to expansion project of Masjid-al-Haram in 2013.
'According to TH records, they have received a reply on the additional quota from the Saudi Arabian authorities during the month of Ramadan, Syawal, Zulkaedah, and in fact, the reply has even been given in the month of Zulhijjah,' he said in a statement here today.
Lak expects rice exports this year to be higher than last year due to two significant factors - the additional quota from China and an undeterred export volume to the EU despite the recently imposed taxes.
Likewise, out of Government Hajj quota, 10,000 seats would be allocated to octogenarian aspirants without balloting.