ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -Embargoes occur when one country bans trade with another country.

Detailed explanation-3: -Tariffs cause the consumer to pay a higher price for an imported item, increasing the demand for a lower-priced item produced domestically. Quotas are limits on the amount of a good that can be imported into a country. Quotas can cause shortages that cause prices to rise. Embargoes forbid trade with another country.

Detailed explanation-4: -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-5: -The main types of trade barriers used by countries seeking a protectionist policy or as a form of retaliatory trade barriers are subsidies, standardization, tariffs, quotas, and licenses.