Which type of trade barrier is explicitly used for political purposes?

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

Answer: (A)

Verified step by step guidance

1. Understand the definition of each trade barrier: A tariff is a tax on imports, a quota is a limit on the quantity of imports, a subsidy is financial support to domestic producers, and an embargo is a complete ban on trade with a particular country.
2. Recognize the purpose of each trade barrier: Tariffs and quotas are primarily economic tools to protect domestic industries or raise government revenue, subsidies support domestic producers to compete internationally, while embargoes are often used for political reasons to pressure or punish another country.
3. Focus on the political aspect: Since the question asks for a trade barrier explicitly used for political purposes, identify which barrier is designed to restrict trade entirely as a form of political sanction or statement.
4. Recall that an embargo is a trade barrier that completely prohibits trade with a specific country, often imposed to achieve political goals such as influencing foreign policy or punishing a government.
5. Conclude that among the options, the embargo is the trade barrier explicitly used for political purposes.