An import quota is a government-imposed limit on the quantity of a specific product that can be imported into a country during a given time period. This regulation is designed to protect domestic industries from foreign competition by controlling the supply of imported goods. By restricting imports, governments aim to encourage local production and maintain stable prices for consumers. Import quotas can apply to various products, such as agricultural goods, textiles, or automobiles. When a quota is reached, no additional imports of that product are allowed until the next period begins. This system can impact international trade relations and influence market dynamics within the country.