ABSOLUTE QUOTA Meaning and
Definition
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An absolute quota refers to a specific measure or restriction imposed by a governing body in order to limit or control the quantity or amount of a particular product or resource that can be imported or exported over a specified time period. It is a form of trade regulation that aims to regulate and balance international trade by placing a maximum limit on the quantity of goods that can be traded between countries.
This type of quota is absolute in the sense that it sets a predetermined numeric quantity or volume, which cannot be exceeded under any circumstances. It is unlike other forms of quotas that are based on percentage or proportional calculations.
The purpose of implementing an absolute quota is primarily to protect domestic industries and markets from being overwhelmed or overshadowed by imports. By setting a specific limit on imported goods, it aims to ensure a certain level of domestic production, sales, and employment opportunities. The absolute quota helps to stabilize and maintain a more balanced trade relationship by controlling the amount of foreign goods entering a country.
Governments often impose absolute quotas on specific industries that are deemed sensitive or strategic to national interests. These quotas may be temporary or permanent, depending on the objectives and needs of the country. Compliance with absolute quotas is usually strictly monitored and enforced by customs and trade authorities to prevent violations and maintain the integrity of the regulatory system.
Etymology of ABSOLUTE QUOTA
The etymology of the word "absolute quota" can be understood by examining the origins of the individual words:
1. Absolute: The word "absolute" comes from the Latin word "absolutus", which is the past participle of "absolvere", meaning "to set free, absolve". In English, "absolute" refers to something that is complete, total, or not limited by anything.
2. Quota: The word "quota" is derived from the Latin word "quotus", meaning "how many". It was originally used in 17th-century Latin as "quotum" for "a proportional part". In English, "quota" refers to a specific share, portion, or fixed amount assigned to someone or something.
When these two words are combined, "absolute quota" refers to an unchanging and non-negotiable fixed amount or share that is assigned without any flexibility or variation.
