Question

If Germany, in an attempt to bolster the sales of its own auto manufacturers, decided to limit
the number of automobiles that could be brought in from other countries, Germany would be
using a(n)_________.
a. embargo.
b. boycott.
c. exchange control.
d. import tariff.
e. quota.

Answer 1

A. Embargo

Embargo is a complete stop on goods coming into the country by the government. A boycott is consumer-driven, an import tariff just raises prices on foreign cars, a quota would be a set number of cars the government is allowing in, and an exchange control applies to money, not goods.