Marshall Thomas said:
When a country embargos you, do you automatically embargo them- if so, with or without a stability hit? If you embargo them will they automatically embargo you? Is it ever wise to have a trade agreement with a nation which does not own a CoT, but has many competive merchants in the CoTs which compete with your own merchants?
I never embargo, myself. But I might take advantage of embargoes to get free CBs. I might sign trade agreements, but only if someone controls a very lucrative CoT. If someone doesn't have a CoT but has very competitive merchants, I usually prefer to leave them alone. The AI usually doesn't invest too much into trade tech, and if their merchants are so efficient as to drive all of my merchants out of my own CoT, then their land tech is also probably pretty good (better than mine), so I wouldn't want to provoke them. Besides, you can make a pretty penny off of trade tolls, even if your merchants can't compete.
I don't think there is any connection between embargoing someone and them embargoing you back. As far as I can tell, embargoes are not initiated due to poor relations, but due to trade dominance. Spain can hate your guts, but if you don't have many (if any) merchants in any of their CoTs, they probably won't embargo you.