Typology and effects of economic sanctions on foreign trade

Abstract

Economic sanctions are defined in the dictionary of economics, in general, as ,,prohibitive economic measures applied by the international community on the export and/ or import of material goods, services, resources, etc. to or from a particular country”. The types of sanctions range from personal restrictions to almost total bans on international trade with one or more countries, which can be extended even to restrictions on legal rights such as trademark protection and other intellectual property. Sometimes sanctions can be included as part of protectionist measures representing behaviors designed to increase wealth without creating wealth, the most famous cases being attempts to force a country's authorities into desirable political action. Usually, these attempts target political and economic leaders, businesses and assets that are considered vulnerable to external pressures. Although some doubt the effectiveness of sanctions, the prevailing opinion is slightly in their favor.