What are restrictions placed on a country's trading practices, often as a punitive measure?

What are restrictions placed on a country's trading practices, often as a punitive measure?

• A. Embargoes
• B. Sanctions
• C. Tariffs
• D. Quotas

Answer: (B)

Sanctions are measures imposed by one country or group of countries to influence or punish another nation for various reasons, including political behavior or human rights violations. These restrictions can take various forms, including trade barriers, asset freezes, or restrictions on financial transactions. In the context of trade, sanctions often involve limiting or completely stopping the exchange of goods and services with the targeted nation, thereby severely impacting its economy. This makes sanctions an effective tool for countries aiming to compel changes in the behavior of other nations without resorting to military action. While embargoes, tariffs, and quotas are also related to trading practices, they have different applications and purposes. An embargo specifically refers to a ban on trade with a country, typically more comprehensive than sanctions. Tariffs are taxes imposed on imported goods to protect domestic industries or generate revenue, and quotas limit the quantity of a specific product that can be imported or exported. Therefore, sanctions are the most fitting term for the restrictions that are used punitively in international relations.

Sanctions are measures imposed by one country or group of countries to influence or punish another nation for various reasons, including political behavior or human rights violations. These restrictions can take various forms, including trade barriers, asset freezes, or restrictions on financial transactions.

In the context of trade, sanctions often involve limiting or completely stopping the exchange of goods and services with the targeted nation, thereby severely impacting its economy. This makes sanctions an effective tool for countries aiming to compel changes in the behavior of other nations without resorting to military action.

While embargoes, tariffs, and quotas are also related to trading practices, they have different applications and purposes. An embargo specifically refers to a ban on trade with a country, typically more comprehensive than sanctions. Tariffs are taxes imposed on imported goods to protect domestic industries or generate revenue, and quotas limit the quantity of a specific product that can be imported or exported. Therefore, sanctions are the most fitting term for the restrictions that are used punitively in international relations.