What is an embargo?

An embargo is a ban on trade with a particular country, often implemented for political or economic reasons. The primary purpose of an embargo is to exert pressure on the targeted nation by restricting its ability to engage in trade, which can include prohibiting the export or import of certain goods and services. This could be enacted due to national security concerns, human rights violations, or other geopolitical issues.

Other options describe different economic concepts: a tax on exported goods typically refers to tariffs, a restriction on specific imports pertains to quotas or import bans, and a limit on currency exchange relates to currency controls or foreign exchange regulations. Each of these plays a role in international trade, but they do not encapsulate what an embargo entails, which is specifically the prohibition of trade with a defined nation.