A Political Failure of a Trade Embargo Is Most Likely

question 31

Multiple Choice

A political failure of a trade embargo is most likely to occur if:

• A)the target country is a dictatorship and the dictatorship is jeopardized by retreating from the policy that provoked the embargo.
• B)the target country is a colony of the imposing country and the embargo adversely affects the imposing country.
• C)the country that imposes the embargo has an unstable government.
• D)the imposing country is a relatively smaller country than the target country in terms of trade volume.

---

Definitions:

Lender

An individual, a financial institution or another entity that provides funds to others with the expectation that the funds will be repaid, typically with interest.

Current Liability

This refers to debts or obligations that are due to be paid within one year or within the normal operating cycle of the business, whichever is longer.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle.

Discounted Note

A type of debt instrument that is sold or redeemed for less than its face value but whose actual value matures to the full face amount at a later date.