How do quotas protect local producers?(1 point)

Question

Responses

Quotas help organize workers to advocate for increased protections.
Quotas help organize workers to advocate for increased protections.

Quotas increase competition among different countries, which lowers prices of goods.
Quotas increase competition among different countries, which lowers prices of goods.

Quotas add a fee to the price of imported goods, so they are less competitive than local products.
Quotas add a fee to the price of imported goods, so they are less competitive than local products.

Quotas limit the goods that can be imported, which ensures less competition for local producers.
Quotas limit the goods that can be imported, which ensures less competition for local producers.

Answer 1

Quotas limit the amount of goods that can be imported, which reduces competition for local producers. By restricting the quantity of imported goods, quotas create a barrier to entry for foreign producers, giving local producers a competitive advantage. This protection allows local producers to maintain or increase their market share, leading to increased sales, profits, and employment opportunities in the domestic market.