Imposing an Import quota helps in__:
1. correcting unfavourable balance of payments
2. improving balance of trade
3. protecting domestic industries
4. promoting exports
Choose the correct option from the codes given below:

Answer: [C] Only 1, 2 & 3

An import restriction imposed on imported goods, to reduce the quantity of certain goods allowed into a country from a particular exporting country, in a stated period. The purpose may be to conserve foreign currency, if there is an unfavourable balance of payments, or to protect the home market against foreign competition (see protective duty). Quotas are usually enforced by means of import licenses.

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