- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 6. International Trade
- Subject 2. International Trade Restrictions and Agreements
CFA Practice Question
Which of the following is least desirable to exporters?
B. A quota
C. An embargo
D. A voluntary restraint agreement
A. A tariff
B. A quota
C. An embargo
D. A voluntary restraint agreement
Correct Answer: C
An embargo eliminates all trade; the other policies reduce trade but do not normally eliminate it entirely.
User Contributed Comments 3
| User | Comment |
|---|---|
| taz81 | what is an embargo? |
| rt2007 | an embargo is the prohibition of commerce and trade with a certain country, in order to isolate it and to put its government into a difficult internal situation. |
| cfastudypl | well said rt2007. |