Which term describes a government order imposing a trade barrier that restricts imports?

Which term describes a government order imposing a trade barrier that restricts imports?

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

Answer: (B)

An embargo is an official ban on trade with a country or on specific goods, which directly blocks imports. It’s the strongest form of trade restriction, stopping items from entering a country entirely or from a particular source. A tariff, by contrast, is a tax on imported goods that raises their price and can reduce demand, but it doesn’t prohibit imports outright. A subsidy is financial support to domestic producers to make imports comparatively less attractive, not a direct restriction on imports themselves. Standards impose regulatory requirements that can limit what can be imported, but they aren’t a blanket ban. So the term that best fits “a government order imposing a trade barrier that restricts imports” is embargo, because it directly blocks trade with a country or on specific goods.

An embargo is an official ban on trade with a country or on specific goods, which directly blocks imports. It’s the strongest form of trade restriction, stopping items from entering a country entirely or from a particular source.

A tariff, by contrast, is a tax on imported goods that raises their price and can reduce demand, but it doesn’t prohibit imports outright. A subsidy is financial support to domestic producers to make imports comparatively less attractive, not a direct restriction on imports themselves. Standards impose regulatory requirements that can limit what can be imported, but they aren’t a blanket ban.

So the term that best fits “a government order imposing a trade barrier that restricts imports” is embargo, because it directly blocks trade with a country or on specific goods.