ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There is a war.
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Change needs to occur.
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Change has not occurred.
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None of the above
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Detailed explanation-1: -An embargo can block the importation of important goods and services to the civilian population of the state that is subject to the restriction. In a state that imposes an embargo, businesses may lose the ability to trade or invest in the state that is subject to the embargo.
Detailed explanation-2: -Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is imposed.
Detailed explanation-3: -1 : an order of a government prohibiting the departure of commercial ships from its ports. 2 : a legal prohibition on commerce. 3 : stoppage, impediment; especially : prohibition.
Detailed explanation-4: -The often overlooked impact of trade barriers – be it tariffs, quotas, tariff quotas, or embargoes – are the price effects borne by consumers. Any trade barrier enacted will increase the price of that good. All else the same, the higher prices will result in a decrease in the quantity of the good demanded.