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What is an embargo, and what does it entail?

Answer :

Final answer:

An embargo is an economic boycott where a country ceases trade with another country as a form of protest. The Embargo Act of 1807 is an example of this, affecting American businesses and farmers. Enforcement can be difficult, leading to smuggling and trade route redirection.

Explanation:

An embargo is an economic boycott in which a country ceases trade with another country as a means of protest or exerting pressure. It involves the prohibition of imports and exports between the two countries involved. For example, the Embargo Act of 1807 was a sweeping ban on trade initiated by the United States in response to British seizures of American ships on the high seas.

The embargo had unintended consequences, as it primarily impacted American businesses and farmers rather than its intended target. The American economy suffered greatly, with business activity declining by 75 percent.

Enforcement of embargoes can be challenging, often leading to widespread smuggling and trade routes being redirected. Embargoes are a form of economic coercion used by countries to communicate their displeasure with another country's policies or behavior.

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