How do embargoes most Negatively affect a domestic Market?

A. by depriving domestic producers of needed goods, restricting their ability to trade

B. by helping international producers fill a market void, decreasing domestic trade

C. by preventing domestic producers from trading needed goods with all countries

D. by encouraging international producers to sell new food for lower prices than domestic goods

Answer:- D. by encouraging international producers to sell new food for lower prices than domestic goods

The correct answer is ‘by depriving domestic producers of needed goods, restricting their ability to trade’. An embargo is a directive from the government that limits trade with a specific nation or nations. Embargoes can be implemented for a number of purposes, including to punish a nation for its deeds or to safeguard domestic businesses. Domestic producers frequently bear the brunt of an embargo’s effects. They might not be able to obtain the supplies they require to manufacture their own items, which could result in the loss of jobs and a drop in economic activity. Additionally, embargoes might result in higher consumer costs since domestic producers are compelled to raise their prices in order to make up for the lost revenue.