Which term describes a ban or restriction on trade with another country?

• A. Embargo
• B. Subsidy
• C. Tariff
• D. Quota

Answer: (A)

Verified step by step guidance

1. Understand the definitions of each term related to trade restrictions: An embargo is a complete ban or severe restriction on trade with a particular country.
2. A subsidy is a financial aid provided by the government to support domestic producers, not a trade restriction.
3. A tariff is a tax imposed on imported goods, which raises their price but does not completely ban trade.
4. A quota is a limit on the quantity of a good that can be imported, restricting but not banning trade.
5. Since the question asks for a term describing a ban or restriction on trade, identify that an embargo fits this description as it is a ban or severe restriction on trade with another country.