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Quotas

Quotas. A quota is a quantity limit on the import of a good. USA market for NZ lamb. S. S. P1. Quota. Pe. Pe. New USA price. Pw. D. D. Quota. Qe. Qnz. Qe. Q total. Red tape/ regulations. Placing obstacles in the way of another nations exports.

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Quotas

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  1. Quotas • A quota is a quantity limit on the import of a good. USA market for NZ lamb S S P1 Quota Pe Pe New USA price Pw D D Quota Qe Qnz Qe Q total

  2. Red tape/ regulations • Placing obstacles in the way of another nations exports. • E.g the EEC made it more difficult for NZ producers to sell their meat in European markets by continually changing the hygiene regulations that they had to meet before being allowed to sell their products in Europe. This increased costs in freeing works in NZ.

  3. Subsidies • Subsidising production effectively lowers cost and allows them to complete more effectively against cheaper imported goods. NZ market for locally made shoes S • Locally made goods become relatively more cheaper and so consumers demand more locally made goods and less imported goods. S’ Pe P1 D Qe Q1

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