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What is a trade embargo?

What Is an Embargo? An embargo is a trade restriction, typically adopted by a government, a group of countries or an international organization as an economic sanction. Embargoes can bar all trade, or may apply only to some of it, for example to arms imports.

What are trade sanctions?

Trade sanctions are a subcategory of economic sanctions, which are economic penalties imposed on a country to accomplish policy goals beyond the sanctioned economic activity. Trade sanctions are restrictions on trade with a country for reasons of foreign policy. Trade sanctions can be imposed to alter objectionable policies or to punish them.

Are asset freezes a trade sanction?

Asset freezes and seizures are part of the broader economic sanctions toolbox and can certainly hinder trade, but are not a trade sanction specifically, An embargo is the most severe trade sanction, as a general prohibition of most trade with the sanctioned country.

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