Question

Tariffs and import quotas are mainly used for economic reasons. In what way are they different from embargoes?

Answer 1

The correct answer to this open question is the following.

Although there are no options attached we can say the following.

Tariffs and import quotas are mainly used for economic reasons. These are different from embargoes for the following reasons.

In simple terms, a tariff is a tax on every import. For every import that enters the country, you have to pay the due tax. The government decides the percentage to be paid.

The case of quotas refers to the number of goods that can be important. It is not about money or tax, it is a restriction imposed on the number of products that can be imported from a determined country. This makes the imported good be pricy because there is a limited number of them.

The case of the embargo is different. An embargo means that one country cannot trade with another country. For instance, during Barack Obama's administration, the United States imposed a trade embargo on Cuba. There was no trade between the two countries.