Question

First, explain in your own words the concept of displacement. Second, explain why it may justify non-maximal sanctions.

Answer 1

Displacement-it is defined as the change in the position of an object.

Economic displacement means a change in the rules which cause expansion or growth in economic activity or specific area and leads to a decrease in economic activity somewhere else. For example growth in one sector may harm another one and decrease in another economic activity. Sometimes government rules bring these types of circumstances.

non-maximal sanctions-Economic sanctions are when political parties take action to save their interest. For example, the country, the USA bans Chinese products so as to increases domestic production, and in return it will harm china's economy.

Non maximal sanctions is when it causes less trouble to the other economy.For example USA increases the import duty and it causes trouble for china but Chinese products are still accepted in USA.