Trade quotas are government-imposed limits on the quantity of a specific product that can be imported or exported during a given time period. These quotas are designed to protect domestic industries from foreign competition by restricting the amount of foreign goods available in the market. By controlling supply, trade quotas can help stabilize prices and support local businesses. Countries may implement trade quotas for various reasons, including economic protectionism and national security. For example, a government might set quotas on agricultural products to ensure that local farmers, such as corn or wheat producers, can compete effectively against imported goods.