Final answer:
The US government's decision to stop all trade with Mexico is described as an embargo, a trade restriction that completely forbids trade with another country. The correct answer is option d.
Step-by-step explanation:
The scenario described by the US government deciding to no longer trade any goods with Mexico is an example of a trade restriction known as an embargo. An embargo is a policy option that completely forbids trade with another country, either in all goods or in specific goods. It is more extreme than other forms of trade restrictions such as quotas, which set maximum quantities for imports, and tariffs, which are taxes on imported goods. An embargo impacts the economies of both the imposing country and the targeted country by limiting access to goods, which could potentially lead to shortages and increased prices.
While a quota limits the quantity of a good that can be imported into a country, and a tariff adds a cost to imported goods, an embargo essentially cuts off trade completely. This can be used as a political tool to exert pressure on a country's government or to protest against certain policies. The effect of an embargo can be significant, disrupting trade relationships and causing economic harm to both the exporting and importing nations.