10
QuizMultiple Choice

Trade Agreements

Question 10 • * HSA 26-27 US Government

How do embargoes most negatively affect a domestic market?

Answer
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 goods for lower prices than domestic goods

Explanation

An embargo restricts trade with a particular country, which can cut off domestic producers from goods, materials, or resources they need to operate and trade. This is why the best choice is “by depriving domestic producers of needed goods, restricting their ability to trade.” An embargo does not necessarily prevent trade with all countries, as choice C suggests.

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