Embargoes Imposed by Governments, Especially If Directed Against a Particular

question 27

Multiple Choice

Embargoes imposed by governments, especially if directed against a particular country rather than unilaterally, do not usually succeed because:

• A) avoidance of the embargo is possible through countertrade or by dealing with intermediaries based in countries that are not part of the embargo.
• B) the business firms of the nation that initiated the embargo are likely to be at a disadvantage in taking up potential export opportunities in the targeted country because their home country will be one of the last to eventually lift the embargo.
• C) a third-party country will often run embargoes, or restrict trade, with the country that initiated the original embargo.
• D) the country that has been targeted in the embargo tends to apply its own trading restrictions, which damage the country that set the original embargo.
• E) options A and B are correct.

Comprehend the implications of market failure and government intervention.

Recognize the challenges in achieving efficient outcomes through public decision-making processes.

Understand the basic concepts and theories of social psychology.

Describe factors that contribute to social attraction and love.

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Definitions:

Political Performance Appraisals

The evaluation of an employee's job performance influenced by internal organizational politics and relationships rather than solely on merit.

Organizational Processes

The structured set of activities and tasks that are carried out by an organization to achieve its objectives.

Absolute Power

A condition of unchecked and total control or authority, often exercised by a leader or government without limitations or opposition.

Referent Power

A form of influence based on the leader’s likability and the followers’ desire to identify with or emulate them.