ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The UN Security Council in December 2006 unanimously adopted Resolution 1737, which inter alia, established an embargo on the export to and import from Iran of certain items and technology potentially related to nuclear weapons.

Detailed explanation-2: -The most direct barrier to trade is an embargo– a blockade or political agreement that limits a foreign country’s ability to export or import. Embargoes still exist, but they are difficult to enforce and are not common except in situations of war. The most common barrier to trade is a tariff–a tax on imports.

Detailed explanation-3: -Terms in this set (15) Example: The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year. Example: In 1963, President Kennedy issued sanctions, which prohibited all trade with Cuba.

Detailed explanation-4: -Common examples of protectionism, or tools that are used to implement a policy of protectionism include tariffs, quotas, and subsidies. All of these tools are meant to promote domestic companies by making foreign goods more expensive or scarce.

Detailed explanation-5: -Trade barriers are often enacted to protect industries and workers within a country. This is referred to as protectionism. For example, tariffs, quotas and embargoes make foreign goods more expensive and less available.