Describe the various types of political controls on international trade. Be sure to highlight the differences between the types.
Various political controls on international trade are:
Quotas : Quotas are restrictions which are placed to reduce the quantity of imports entering into the country. The aim of this is to protect the domestic producers and also encourage domestic production. The government doesn't earn any revenue in this case.
Tariff: Tariff is the excess amount placed on the imports of certain goods. This increases the price of imported goods in the domestic market and thus reduce their demand. One major reason of imposing tariff is that the government earns revenue from it unlike the quota.
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