Transshipments, Which Are Used Commonly in International Trade, Tend To

question 24

Multiple Choice

Transshipments, which are used commonly in international trade, tend to:

• A) undermine the effectiveness of a sanction.
• B) strengthen the national security argument for trade restrictions.
• C) increase the effectiveness of trade restrictions.
• D) reduce the volume of world trade.

---

Definitions:

Law of Diminishing Returns

An economic principle stating that adding more of one factor of production, while holding others constant, will at some point yield lower per-unit returns.

Age of Mass Consumption

A stage of economic development where a significant portion of the population engages in the widespread consumption of goods and services, often seen as indicative of a higher standard of living.

Permanent Underclass

A group within society that holds the absolute lowest rank in the social class structure, situated beneath the main portion of the working class.

Industrialized Nation

An Industrialized Nation is a country with a developed economy characterized by significant industrial activity, technological advancement, and higher living standards.