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Halposa, a developed country, has had armed conflicts with its neighboring country, Lemponga, for a few years. Hence, the newly elected Halposan government has decided to completely stop exporting consumer durables and electronic goods to Lemponga. In this scenario, the Halposan government wants to impose a(n) _____.

1) Embargo
2) Sanction
3) Tariff
4) Trade agreement

User Elhoej
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Final answer:

The Halposan government intends to impose an embargo against Lemponga to stop exporting consumer durables and electronic goods, as part of its political and economic pressure strategies. The correct option is 1).

Step-by-step explanation:

In the scenario where the Halposan government decides to completely stop exporting consumer durables and electronic goods to Lemponga, the government is looking to impose a embargo. An embargo is a government order that restricts commerce or exchange with a specified country or the exchange of specific goods.

An embargo is the most severe form of economic sanction and completely bans trade with the target nation. The situation with Halposa and Lemponga resembles historical instances where countries have imposed embargoes to exert pressure on other nations to change policies, for political reasons, or due to armed conflicts.

For example, economic sanctions have been used to end the apartheid regime in South Africa and the economic boycott of Iran to curb its nuclear program.

Governments use trade barriers like embargoes to either encourage or discourage trade. While an embargo interrupts all trade, other forms of trade barriers include tariffs, which are taxes on imports, and quotas, which are maximum limits on the number of goods that can be imported.

Finally, protectionist policies may also involve complex permit systems to control the import of specific goods, often resulting in government bureaucracy and sometimes corruption. Option 1) is the correct one.

User Kong
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