Quota share

A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity. A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity. For example, the United States imposes an import quota on cars from Japan. The Japanese government may see fit to impose a quota share program to determine the number of cars each Japanese car manufacturer may export to the United States. Any extra number that a manufacturer wishes to export must be negotiated with another manufacturer that did not or cannot maximize its share of the quota.