Proceedings of the 8th International Conference on Advanced Research in Business, Management and Economics
Year: 2024
DOI:
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The Impact of International Sanctions on Economic Processes
Laura Kolesnikova
ABSTRACT:
This study examines the multifaceted impacts of international sanctions, focusing on their economic ramifications and policy effectiveness. International sanctions serve as a prominent tool of coercive diplomacy, aiming to induce policy changes in targeted nations. The objectives of sanctions elicit varied responses, with targets demonstrating more compliance when sanctions aim to resolve military conflicts or promote democracy. Conversely, targets resist sanctions aimed at altering political regimes or combating terrorism. Sender capitulation is more likely when sanctions prioritize human rights. The effectiveness of sanctions is closely tied to their economic impact, which hinders access to international financial resources, technology, and imports, leading to increased operational costs and reduced productivity. Sanctions also disrupt trade and investment flows, resulting in adverse effects on economic growth and employment rates. Despite their potential efficacy, sanctions with ambiguous or multiple goals are less likely to succeed, advocating for clear objectives in sanction policies. The study underscores the complex interplay between economic sanctions, policy objectives, and their socioeconomic ramifications, urging comprehensive analysis to inform effective policy-making and mitigate unintended consequences.
keywords: International sanctions, economic impact