Question

How do embargoes most negatively affect a domestic market?

A. by depriving domestic producers of needed goods, restricting their ability to trade


B. by helping international producers fill a market void, decreasing domestic trade


C. by preventing domestic producers from trading needed goods with all countries


D. by encouraging international producers to sell new food for lower prices than domestic goods

Answer 1

A. by depriving domestic producers of needed goods, restricting their ability to trade

Answer 2

Embargoes most negatively affect a domestic market by depriving domestic producers of needed goods, restricting their ability to trade.

An embargo consists on a government order that restricts commerce or exchange with certain country or the exchange of specific goods. An embargo is created because of unfavorable political or economic situations between nations. An embargo is created in an attempt to isolate a country and entails difficulties for its governing body, forcing it to act on the issue that led to the embargo.