Which of the following is one way in which an embargo differ so much tariff
One way in which an embargo differs so much from a tariff is that an embargo is a complete prohibition or restriction on trade or economic activity with a particular country, whereas a tariff is a tax or duty imposed on imported goods or services.
In an embargo, there is a complete ban on trade with the target country, including both imports and exports. This means that no goods or services are allowed to be exchanged between the embargoing country and the targeted country.
On the other hand, a tariff is a tax imposed on specific goods or services that are imported into a country. It is designed to make imported goods more expensive and less competitive compared to domestic goods. Tariffs can be applied to specific products, industries, or countries, depending on the government's trade policy.
Overall, the main difference between an embargo and a tariff is that an embargo is a complete ban on trade and economic activity with a specific country, while a tariff is a tax imposed on specific imported goods or services.
One way in which an embargo differs from a tariff is in the severity of their economic impact.
1. Embargo: An embargo is a complete ban on trade between two countries. It restricts the import and export of goods and services, often as a result of political conflicts or disputes. The purpose of an embargo is to exert economic pressure on the targeted country, causing economic harm and potentially influencing its policies or actions.
- Impact: An embargo can have a severe economic impact on both the targeted country and the imposing country. It disrupts supply chains, reduces market access, and hinders business activities between the two nations. The targeted country may experience a decline in exports, limited access to necessary imports, and significant economic losses.
2. Tariff: A tariff, on the other hand, is a tax imposed on imported goods by a country's government. It increases the price of imported products, making them less competitive in the domestic market compared to domestically produced goods. Tariffs are often employed as a means of protecting domestic industries from foreign competition or generating revenue for the government.
- Impact: While tariffs can also have economic consequences, they are generally less restrictive than embargoes. Tariffs primarily affect the prices and availability of imported goods in the domestic market. They can lead to higher prices for consumers, reduced consumer choices, and potential retaliation from other countries in the form of retaliatory tariffs, triggering trade wars.
In summary, an embargo is a complete ban on trade, causing severe disruptions to economic activities between the involved countries. In contrast, a tariff is a tax on imported goods, aiming to protect domestic industries or generate revenue, with a less severe impact on overall trade.