Which trade barrier sets specific numerical limits for imports?

The correct answer is quotas, which are trade barriers that establish specific numerical limits on the quantity of a particular good that can be imported into a country during a given time period. Quotas are implemented by governments to protect domestic industries from foreign competition by restricting the supply of imported goods, thereby allowing local producers to maintain higher prices and market share.

Quotas can help regulate the flow of goods and ensure that domestic markets do not become oversaturated with foreign products. By placing a cap on the amount that can be imported, countries can also manage trade balances and protect strategic industries deemed vital for national interests.

In contrast, voluntary export restraints involve agreements between exporting and importing countries, where the exporter agrees to limit the amount of goods sold in the importing country, but these do not set legally binding numerical limits like quotas do. Standards refer to the regulations regarding the quality and safety of products, which may affect trade but are not numerical limitations. Subsidies provide financial assistance to local industries to enhance their competitiveness but do not directly restrict the number of imported goods.