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racial groups equally and the 1990s to end Iraq's occupation of Kuwait.<br /> The use of sanctions has long been available as an ultimate economic weapon (e.g. the Con tinenta l System of Napoleon at the beginning of the nineteen th century), but it has always been difficult to enforce sanctions universally. In the form of a trade embargo, sanctions stimulate domestic industry to produce import substitutes, but this movemen t of an economy towards AUTARKY causes losses in ECONOMIC WELFARE as production cannot be concentrated in the most efficient industries. Article 41 of the Charter of the United Nations mentions sanctions as a permissible form of international action.<br /><em>Reference</em><br />Carter, B.E. (1989) International Economic Sanctions, Cambridge: Cambridge University Press.<br /> Curtin, T. and Murray, D. (1965) Economic Sanctions and Rhodesia, London: Institute of Economic Affairs.<br /> Hufbauer, G. and Schott, J. (1985) Economic Sanctions Reconsidered, Washington, DC: Institute for International Economics.
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nominal income (DO) see money income nominal tax rate (H2)<br />The published rate of tax on a good, income or capitaL The whole burden of such taxes is often reduced by tax allowances or credits.
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current ratio (M2)<br />The ratio of CURRENT ASSETS to CURRENT LIABILITIES of a firm. Also known as a working capital ratio or 2:1 ratio following the rule of thumb that assets should be twice liabilities, unless the seasonal or speculative nature of the firm requires more working capitaL This is the principal measure of the LIQUIDITY of a firm.
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