What is Quotas: Define, Types, Advantages, Disadvantages & Facts

Quotas are those which are used in international trading to help and control the volume of trade between the countries. They are forced on specific goods to reduce imports increase the domestic production. There are restrictions that limit the number, or monetary value of goods that can be imported or exported during a particular period. For example, you could divide a population by the state they live in, income or education level, or sex. The population is divided into groups also called strata and samples are taken from each group to meet a quota. Care is taken to maintain the correct proportions representative of the population.ranslate

Types of quotas:

Types of quotas

There are two types of quotas which include:

  1. Global quota: To allow the limited number of unit of specified merchandise to enter or withdrawn all countries or from specific countries during a period of time.
  2. Tariff: To allow the specified quantity of merchandise to be entered or withdrawn for the consumption in a country at a reduced tariff during a specified period of time.
  3. Absolute quota: It is a simple physical limit on number.



  • It is easy to manage.
  • Very fast to create and complete.
  • It is inexpensive.
  • Takes into account population part, if required.
  • This can be used if there is a chance for sampling techniques are not possible.



  • The selection is not random.
  • Selection partiality creates a problem. Like for example, you might avoid choosing the people who live farther away, or people staying in rough neighborhoods.

Effects of quotas:


Without quotas, the market price is P word and quantity of imports is Q4-Q1 and the world exports make revenue of areas like A+B+C. When quotas are imposed on Q3-Q2 that leads to falling the imports in just Q3 to Q2 from which the domestic suppliers gain more Q1 to Q2 hence can create domestic jobs. Consumers pay a higher price and also total quantity falls from Q4 to Q3. As there is no income government is not affected directly. There is a net welfare loss for society because the increase in producer surplus is out balanced by the decline in consumer surplus.

Facts about quota: 

Facts about quota

  • Only 22.8 percent of all national parliamentarians were women as of June 2016, a slow increase from 11.3 percent in 1995.
  • As of October 2017, 11 women are serving as Head of State and 12 are serving as Head of Government.
  • Rwanda had the highest number of women parliamentarians worldwide. Women, there have won 63.8 percent of seats in the lower house.
  • Globally, there are 38 States in which women account for less than 10 percent of parliamentarians in single or lower houses, as of June 2016, including 4 chambers with no women at all.
  • The global proportion of women elected to local government is currently unknown, constituting a major knowledge gap.
  • As of January 2017, only 18.3 percent of government ministers were women; the most commonly held portfolio by women ministers is the environment, natural resources, and energy, followed by social sectors, such as social affairs, education, and the family.

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