A government order imposing a trade barrier.

A government order imposing a trade barrier.

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

Answer: (A)

An embargo is an official government order that stops trade with a country or on specific goods, producing a complete trade barrier. This makes it the best fit for a government order imposing a trade barrier, because it doesn’t merely raise costs or set rules—it halts commerce outright. A tariff also acts as a barrier by raising the price of imported goods, but trade can continue; it’s a tax rather than a prohibition. Standards may restrict trade if products don’t meet required specifications, but they are regulatory hurdles rather than a blanket ban imposed by a single directive. Subsidies encourage production or exports by domestic firms and do not themselves restrict trade.

An embargo is an official government order that stops trade with a country or on specific goods, producing a complete trade barrier. This makes it the best fit for a government order imposing a trade barrier, because it doesn’t merely raise costs or set rules—it halts commerce outright. A tariff also acts as a barrier by raising the price of imported goods, but trade can continue; it’s a tax rather than a prohibition. Standards may restrict trade if products don’t meet required specifications, but they are regulatory hurdles rather than a blanket ban imposed by a single directive. Subsidies encourage production or exports by domestic firms and do not themselves restrict trade.