What is the difference between a quota and a subsidy?

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1052931

2026-05-09 22:20

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A quota is a limit on the amount of goods a foreign entity is allowed to export to the nation possessing the quota. A subsidy, on the other hand, is money paid directly or indirectly to local producers in order to advantage them in the market place compared to foreign producers which do not receive said subsidy. They are two different ways to shield domestic production from imports.

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