Differentiate between Tariff and Quota.

Tariff

Quota

1. Goods in unlimited quantity may be imported by making payment of import tariff.

2. The quantity of imported goods is determined by the demand and supply forces of the market under tariff.

3. Tariffs are comparatively less protective.

4. Under tariff the government gets the revenues directly.

5. Tariffs have adverse effect on inefficient foreign products.

6. Under tariff, the domestic products are protected against competition.

1. By quota, imports of goods is restricted after a cerain quantity.

2. The quantity of imported goods is determined by the Government under quota.

3. Import quotas are comparatively more protective.

4. Under quotas, the government's revenues increase indirectly.

5. Quotas affect both the efficient and inefficient foreign producers adversely.

6. Under quotas, domestic inefficient, producers are sought to protect by abolishing the competition.