CFA Practice Question

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CFA Practice Question

Which of the following is least desirable to exporters?

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.
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