How do embargoes differ from other trade barriers such as quotas and tariffs?

Question

A.
Embargoes can have a negative effect on domestic production.

B.
Embargoes lead to reductions in foreign economic investments.

C.
Embargoes cause an end to all trade across a range of goods.

D.
Embargoes are often used to protect domestic industries.

Answer 1

C. Embargoes cause an end to all trade across a range of goods.

Unlike quotas and tariffs, which restrict the quantity of imports or impose additional taxes on imports, embargoes completely ban trade with a particular country or in a specific product. Embargoes are usually implemented for political reasons, such as to protest against certain actions taken by another country or to isolate a country economically. Embargoes can have severe consequences for businesses and for the overall economy, as they halt all trade in the banned goods.