A quota system is a policy that sets a specific limit on the number of individuals or items allowed in a particular category. This can apply to various areas, such as employment, education, or trade. For example, a company might implement a quota to ensure a certain percentage of its workforce comes from underrepresented groups, promoting diversity and inclusion. In international trade, quota systems can restrict the quantity of goods that can be imported or exported during a specific time frame. Governments use these quotas to protect local industries, manage supply and demand, and maintain economic stability.