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What is an Embargo?



Stephen L. Thomas
By Stephen L. Thomas | January 9, 2024 | In

An embargo happens when a country restricts the trading of certain products, goods, or services with a specific country. Embargos can also be imposed on a group of countries. This can result in a commerce interruption and is usually caused by political or economic conflict with the country in question. Examples of conflicts can include human rights violations, financial disagreements, or environmental challenges. Trade embargos may seem like an issue that only affects governments, but they can have a trickle down effect on businesses, individuals, and investors too. There are different types of embargos which include ones on arms, financial transactions, and investments. How Embargos Work A country, government or international organization can implement an embargo to restrict trade on their valuables. Examples can include goods, services, or currency. Embargos may also be placed on specific categories of goods so that the embargo doesn’t affect the entire economy. The primary goal of an embargo is to pressure the other country to change policies that may not be favorable to the country imposing the embargo. They’re usually a response to foreign policies or actions that pose

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