What is one of the primary impacts of an embargo on trade?

Study for the FBLA Intro to Business Concepts Test. Boost your knowledge with flashcards and multiple choice questions, each question provides hints and explanations. Ace your exam preparation!

An embargo on trade restricts or prohibits the exchange of goods and services between countries, often imposed as a political tool to exert pressure on a specific nation. One of the primary impacts of an embargo is supply chain disruptions. When trade is halted, it interrupts the flow of goods, which affects not only the targeted country's economy but also those countries that rely on imports or exports from the embargoed nation. Businesses may struggle to find alternative suppliers or markets, leading to delays, increased costs, and inefficiencies in production and distribution processes. Thus, supply chains become strained, and shortages may arise, impacting overall economic stability.

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