Explain the following terms in relation to international trade: - Trading bloc - Tariffs - Embargoes - Subsidies. - Leaving Cert Business - Question 3(C) - 2016

A tariff is a tax on imports. It serves to increase the price of the imported goods, which can discourage consumption. For example, an increase in tariffs can protect domestic industries from foreign competition.

An embargo is a complete ban on the import of specific goods from certain countries. Embargoes are typically motivated by political, economic, or environmental reasons. They can also serve as a form of protest against another country’s policies.

Subsidies are financial supports provided by the government to domestic producers. The aim is to reduce production costs so that these producers can sell their products at lower prices compared to imports, thereby encouraging local production.