How does import quota restrict trade?

Import quotas restrict trade by setting a limit on the quantity of a specific good that can be imported into a country during a given timeframe. This limitation reduces the availability of foreign products in the domestic market, often leading to higher prices for consumers and potentially less variety. As a result, import quotas can protect domestic industries from foreign competition but may also lead to inefficiencies and trade tensions between countries. Overall, they distort the natural flow of trade and can hinder economic growth.