Embargoes, quotas, and standards are tools that countries use primarily to:

• A. increase domestic consumption
• B. restrict international trade
• C. promote currency appreciation
• D. encourage foreign investment

Answer: (B)

Verified step by step guidance

1. Understand the definitions of embargoes, quotas, and standards: Embargoes are official bans on trade with certain countries; quotas limit the quantity of goods that can be imported; standards set specific requirements that imported goods must meet.
2. Recognize the primary purpose of these tools: They are generally used to control or limit the amount or type of goods coming into a country from abroad.
3. Analyze the effects on international trade: By restricting imports through embargoes, quotas, or standards, these tools reduce the volume of foreign goods entering the domestic market.
4. Consider the impact on domestic markets: Limiting imports can protect domestic industries from foreign competition, but it does not primarily aim to increase domestic consumption or promote currency appreciation.
5. Conclude that the main goal of embargoes, quotas, and standards is to restrict international trade, thereby controlling the flow of goods across borders.