What is the term for a government-imposed trade restriction that prohibits trade with a specific country?

Study for the Mariemont HS Business Foundations Test. Utilize flashcards and multiple choice questions with helpful hints and explanations for better preparation. Get ready for success!

An embargo is a government-imposed trade restriction that specifically prohibits trade with a particular country. This action is often taken for political reasons, such as to penalize the targeted nation for actions that are deemed undesirable, such as human rights violations or acts of aggression. By enforcing an embargo, the government aims to limit economic interaction and pressure the target country to change its behavior.

In contrast, tariffs are taxes imposed on imported goods to raise revenue or protect domestic industries. Quotas set a limit on the quantity of goods that can be imported or exported during a specific period, controlling the volume of trade rather than outright prohibiting it. Sanctions refer to a broader category of penalties that may include various forms of trade restrictions, but they can also involve financial or diplomatic measures beyond just limiting trade. Therefore, an embargo is the most specific term for a restriction that completely halts trade with a particular nation.

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