What are the effects of tariffs and quotas on international competition? Discuss 2 recent examples and how it effected your employer's industry(retail electronics)

Effects of Tariffs and Quotas

All these are measures to regulate cross border transactions. These are the ways to promote or restrict the import or export from one country to other country or countries. Let us understand one by one. Quota is a restriction by one country on the other countries of imports. This restriction is in nature of quantity. For eg if Usa imposes restriction on India on the imports from Indian television of not more than one lakh television per year. Its a quota, as India cannot export more than one lakh Television to USA. Thus it can affect the employee's cost of production as it cannot import beyond the quota limit from India.

There can be regulatory trade restrictions also where the government imposing procedural rules to limit imports. For example a country might restrict import of all vegetable grown where certain pesticides are used, knowing fully well all other countries use it. Voluntary export agreements are a voluntary contract between the countries of quantity to be exported between them during the specified party. Here unlike quota, all the parties have mutual consent.
Tariff is the duty imposed on exports or imports. For eg if USAlevy 20% duty on India on the imports from Indian Electronics. Then US Employer will have to pay duty of 20%.

Therefore tariff is a direct measure of curbing the imports whereas quotas are indirect measure.

They are successful for the country in a limited way by way of increasing the revenues and promoting the Domestic industry. But in long run it should be minimal to reap the benefits of globalization and the international trade.