What does an embargo involve?

An embargo involves the prohibition of the import or export of certain products. This action is often taken by a government to exert economic pressure or to achieve specific diplomatic goals. By not allowing specific goods to be traded, a government can influence the behavior of another country or respond to international concerns, such as human rights violations or military conflicts. Embargoes can target a range of items, including weapons, luxury goods, or even essential products, depending on the geopolitical context.

The other options do not accurately capture the essence of an embargo. Regulating local business activities pertains more to internal market regulations rather than restrictions on trade between countries. Taxes on exported goods focus on tariffs and fiscal measures rather than outright prohibitions. Encouraging trade with specific countries represents a strategy aimed at enhancing economic exchange, which contradicts the restrictive nature of an embargo.