alleryStart learning →What is an embargo?
AA tax on goods that cross an international border
BA limit on how many units of a good may be imported
CA requirement to sell foreign currency to a central bank
DA complete ban on importing or exporting a product
Answer & Solution
Correct answer: D. A complete ban on importing or exporting a product
1. An embargo is a complete ban against importing or exporting a product.
2. Embargoes are often set up for defence purposes.
3. A country may bar the export of advanced technology to nations that are not allies.
4. A quota only limits quantity, so it stops short of an outright ban.
5. Selling foreign currency to a central bank describes exchange controls.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 3 "Competing in the Global Marketplace", section 3.3 Barriers to Trade_
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