What is a complete ban on trade with a specific country referred to as?

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Master the EPF Supply and Demand Basics Test. Enhance your understanding of supply and demand with interactive quizzes and detailed explanations. Get ready to excel in your exam!

A complete ban on trade with a specific country is referred to as an embargo. An embargo is a government-imposed restriction that halts all forms of trade and commerce with another nation. This can be enacted for various reasons, including political disputes, national security concerns, or to exert economic pressure on a country to change its policies.

Embargoes can significantly impact the economies of both the imposing country and the targeted nation by limiting access to goods, services, and financial resources. While other terms like sanctions and trade blocks can also involve restrictions on trade, they do not specifically denote a complete ban. Sanctions often refer to broader measures that may allow for some trade but impose penalties or restrictions, while trade blocks usually pertain to agreements between multiple countries to facilitate trade among themselves, rather than a complete cessation with a specific country. Quarantine, in turn, refers to isolating goods or individuals to prevent the spread of disease, and is not directly related to trade restrictions. Thus, the term "embargo" accurately captures the meaning of a total trade ban.

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