Quota

A quota is a set amount or number of something that is officially required, allowed, or restricted. It serves as a limit or target, often applied to production, import, export, sales, or membership. Quotas are frequently used to control the supply of goods or services, manage resources, ensure fair representation, or meet certain objectives. They can be imposed by governments, organizations, or businesses and are usually expressed in numerical terms, such as a specific quantity or percentage. The enforcement of a quota is often accompanied by penalties for exceeding the set limits.

Quota meaning with examples

• The government imposed an import quota on foreign steel to protect domestic manufacturers, aiming to limit the quantity of cheaper imports. This decision resulted in higher steel prices for construction companies. Furthermore, domestic producers struggled to meet the increased demand, impacting overall economic growth.
• Sales representatives were given a monthly sales quota, incentivizing them to reach a specific target. Those who exceeded their quota received bonuses, driving a competitive environment. However, some representatives used aggressive tactics to secure sales and potentially damaged customer relationships.
• The university implemented a student quota to ensure diversity in its student body, setting a target for the number of students from underrepresented groups. While this improved diversity, it also sparked debate over the meritocratic admission of candidates.
• The fishing industry was assigned a quota on the amount of fish they could catch to prevent overfishing and preserve the marine ecosystem. This ensured a sustainable harvest, but it impacted the earnings of fishermen and required careful monitoring and enforcement.