Question

how do embargoes most negatively affect a domestic market?
by depriving domestic producers of needed goods, restricting their ability to trade
by helping international producers fill a market void, decreasing domestic trade
by preventing domestic producers from trading needed goods with all countries
by encouraging international producers to sell new goods for lower prices than domestic goods

Explanation:

An embargo restricts trade. It can deprive domestic producers of needed goods and limit their trading ability, which is harmful to the domestic market. International - producer related options don't directly address the negative impact on domestic market as at the core of the problem.

Answer:

by depriving domestic producers of needed goods, restricting their ability to trade