Which term describes penalties imposed by one country on another to influence behavior?

• A. Tariffs
• B. Sanctions
• C. Quotas
• D. Subsidies

Answer: (B)

Penalties imposed by one country on another to influence behavior are sanctions. Sanctions are a coercive foreign policy tool designed to pressure the target state to change its actions or policies. They can take many forms, from cutting off trade and financial interactions to freezing assets or banning travel, and they can target the whole country or specific individuals, companies, or sectors. The goal is to raise costs for the target so that it changes its behavior, rather than directly raising revenue or shaping domestic markets.

Tariffs, quotas, and subsidies serve different purposes. Tariffs are taxes on imports to raise revenue or protect domestic industries. Quotas set a limit on how much can be imported. Subsidies are government payments to domestic producers. None of these are primarily about coercing another country through penalties, which is the essence of sanctions.