Quotas influence international trade flows by directly limiting the quantity of a product that can be imported or exported.

A binding export quota constrains the amount of a good that can leave the country, forcing more of it onto the domestic market.

An import quota is ‘‘binding’’ if the quantity that would be importedwithout thequotarestrictionexceeds thequota ceiling.

Governments have used many different rules or mechanisms todeterminewhichinternational traders effectively receive the right to import or export under quota systems. 

Governments have used import and export quotas to achieve a number of different policy objectives.

Quotas in international trade are government-imposed maximum amounts of a product that can be imported into or exported from a country during a specific period of time (usually a year).

Whatever predictive power the quantity theory approach may have over the long term. . .

Critics of the quantity theory approach have questioned not only the stability of velocity and money demand but also the determination of themoney supply itself.

The classical equation of exchange as it is applied today equates the money supply multiplied by the velocity of circulation. . .

Usually, both LOP and PPP are stated with the implicit assumption that prices in different countries are being compared.