In general, quotas seem to be more a reflection of political intervention and lobbying than of market forces. Quotas are generally negotiated for each country at one time to last for several years. Currently, the United States has negotiated absolute quotas with 47 countries. Once a quota is assigned to a country, the U.S. government doesn't get involved in the process by which the country divvies up its quotas. As a result, there's great opportunity for corruption and favoritism in exporting countries.
Some countries hold quota auctions, where quotas go to the highest bidders.
Others allocate their quotas to specific factories. And, as you can probably guess, the friends and family of those in power are often awarded large portions of certain countries' quotas. Like it or not, as an entrepreneur trying to import a product you've manufactured offshore that has an assigned quota, you're now a pawn in this game and must pay to play. Morse Ave., Irvine, CA 92614. Inc. All rights reserved.