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Embargoes Imposed by Governments, Especially If Directed Against a Particular

Question 18

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

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.

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