Embargo

An embargo is a government-imposed restriction that prohibits trade of certain goods with a specific country or region.

Examples: The U.S. embargo on Cuba, or bans on high-tech exports to sanctioned countries.

Advantages: Can support foreign policy goals, protect domestic industries, or address security concerns.

Challenges: Disrupts supply chains, raises costs, and forces companies to find alternative markets or suppliers.

Real-world example: Sanctions on Russia in 2022 disrupted global energy, food, and fertilizer supply chains.

Explain like I’m five: It’s like being told you can’t share toys with one kid at school.

FAQ: Can companies get exemptions from embargoes? Sometimes, with government licenses or waivers.

Bottom line: Embargoes reshape global trade routes and logistics, often creating ripple effects far beyond the targeted country.