A quota system is a policy that sets a specific limit on the number of individuals or items allowed in a particular category. This system is often used in various contexts, such as immigration, trade, and education, to ensure a balanced representation or distribution. For example, a country may implement a quota for the number of immigrants allowed from certain regions each year. In the context of trade, a quota can restrict the amount of a specific product, like steel or sugar, that can be imported or exported. This helps protect local industries from foreign competition and can stabilize market prices. Quotas are also used in affirmative action policies to promote diversity in educational institutions and workplaces.