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

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

Answer: (A)

Verified step by step guidance

1. Understand the key terms related to international trade restrictions: an embargo, quota, subsidy, and tariff.
2. Define an embargo as a government-imposed ban or restriction on trade with a specific country, often for political or economic reasons.
3. Recognize that a quota limits the quantity of a good that can be imported or exported but does not completely ban trade.
4. Know that a subsidy is a financial aid provided by the government to support domestic producers, not a trade restriction.
5. Identify that a tariff is a tax imposed on imported goods, increasing their price but not banning trade entirely.