ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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quota
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tariff
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embargo
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None of the above
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Detailed explanation-1: -An embargo (from the Spanish embargo, meaning hindrance, obstruction, etc. in a general sense, a trading ban in trade terminology and literally “distraint” in juridic parlance) is the partial or complete prohibition of commerce and trade with a particular country/state or a group of countries.
Detailed explanation-2: -An embargo is when one country completely refuses to trade with another country. Example – The US had an embargo with South Africa during apartheid. Example – The US has an embargo with Cuba that has lasted over 50 years. This is usually done between two countries that are disagreeing over political issues.
Detailed explanation-3: -A government restriction placed on the import or export of goods, services, currency, and other values to any other country or state. Written by CFI Team. Updated January 9, 2023.
Detailed explanation-4: -Sanctions and embargoes are political trade restrictions put in place against target countries with the aim of maintaining or restoring international peace and security.