Russia is a major exporter of wheat. In 2010, a poor harvest occurred and the Russian government banned all wheat exports to make sure there were sufficient supplies for home consumption. Which statement about Russia’s policy is correct?
- AIt is an embargo and will worsen Russia’s balance of trade.
- BIt is a market approach to resource allocation to prevent price rises in Russia.
- CIt is a quota and will improve the importing country’s balance of payments.
- DIt is a tariff and will increase the price of wheat.