Question
A country enacts an embargo on trade with another nation due to political conflict.
What distinguishes this trade restriction from tariffs and quotas, and what is its primary purpose?
It limits the quantity of goods imported; to protect domestic industries
It bans all trade; to punish or pressure the targeted country
It encourages exports; to boost the economy
It taxes imported goods; to raise government revenue
What distinguishes this trade restriction from tariffs and quotas, and what is its primary purpose?
It limits the quantity of goods imported; to protect domestic industries
It bans all trade; to punish or pressure the targeted country
It encourages exports; to boost the economy
It taxes imported goods; to raise government revenue
Answers
GPT-4o mini
The correct distinction for an embargo is:
**It bans all trade; to punish or pressure the targeted country.**
An embargo is a complete prohibition on trade with a specific nation, often imposed for political reasons, unlike tariffs and quotas, which are tools used to regulate and limit trade while still allowing some level of exchange. The primary purpose of an embargo is often to exert political pressure or to punish a country for certain actions.
**It bans all trade; to punish or pressure the targeted country.**
An embargo is a complete prohibition on trade with a specific nation, often imposed for political reasons, unlike tariffs and quotas, which are tools used to regulate and limit trade while still allowing some level of exchange. The primary purpose of an embargo is often to exert political pressure or to punish a country for certain actions.