Embargo Bans All Imports

Steps:

• Identify protection methods: trade barriers that limit foreign goods to protect domestic industries.
• Define embargo: a government order prohibiting all trade with a specific country or good.
• Compare to quota: sets a maximum import quantity, allowing some supply.
• Evaluate impacts: only embargo guarantees zero import supply by law.

Why A is correct:

• An embargo legally prohibits all imports of the good, reducing foreign supply to zero per international trade definitions.

Why the others are wrong:

• B. Quota restricts import volume but permits a positive amount up to the limit.
• C. Subsidy aids domestic producers, increasing local supply without affecting imports.
• D. Tariff raises import prices, reducing quantity demanded but not eliminating supply.

Final answer: A