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The advantages of having the import quotas is that it protects the local producers and it helps in the effective regulation of the prices. The disadvantage is that there is no tax income for the government from the customs.
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What are the pros and cons of imposing quotas on some imported goods?
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Pros and cons of imposing quotas on some imported goods?
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Governments impose quotas in order to ensure that national businesses don't have too much competition from international companies. This helps the country's companies grow. One drawback to this process is the fact that it limits competition.
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