Embargoes and Trade Sanctions
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Sanctions and embargoes are political trade restrictions put in place against target countries .They are normally put in place by either the United Nations or the European Union. An embargo is a full ban set on another country’s trade by another. This means that the country under embargo is not allowed to import or export service and products with the country which banned them. A trade sanction (economic sanctions) is a trade prohibition on certain products or services Normally , it takes in a form of tariffs (tax imposed on the imported product), licensing or Non-tariff barriers to trade (which still restricts imported product but not by taxing). An embargo is normally targeting the whole country while trade sanctions target a specific organization or companies( individuals). Countries always set up trade sanctions or embargoes for the reason to achieve the target of their own nation. It differs in each country. Sometimes countries set up embargoes on each other but in other times, the more advanced or powerful nation sets them on countries that are dangerous or not up to limit. The main reasons why many countries use these are to achieve the aim of maintaining or restoring international peace and security. It is also put there to help the country this has been put on improve themselves. There are also broken down topics on these. Some reasons for embargoes are:
1. Punishing countries that are not up to standard by stopping trade with them * The United States of America also has an embargo on Cuba. That is because Cuba once promised to buy stuff from the USA; they got what they wanted but did not pay up. That’s why the USA stopped working with them. They were dishonest. So the USA could only do one thing which is putting an embargo on Cuba.
2. Dictators keeping power
* For example, North Korea will not let anyone come in or out their country. The reason is because they are communist. The government has an embargo on all other countries because he wants three things which are power, control and to brainwash his people. He does not want his own men to go out in to the world to see other things and become smarter than him so that he can rule his country without anyone trying to protest or overthrow him. Some reasons for trade sanctions are:
1. To protect citizens from harmful items or service
* For example USA has a sanction on guns. This is to ensure the safety of the citizens in USA and to protect people from using it in the wrong way. * Mostly the country will sanction something to uphold human right issues and prevent harmful weapons 2. To uphold country’s law or encouragement
* They have an embargo where they ban all the people in Singapore to buy or sell chewing gum. The reason is because in Singapore, people keep chewing gum and when they are done chewing, they just spit it out on the floor or the wall. That would make Singapore very dirty wouldn’t it? Singapore set up this embargo for one reason, to keep Singapore clean and not make it a filthy country.
1) Harms of Embargoes and Trade Sanction
a. To the country that made the sanction
* If the country that they sanctioned or placed embargo on traded things that they cannot find anywhere else with, they might suffer the lack of product/ service. This can cause an impact on economy and their competing country can surpass them. b. To the country sanctioned
* If an embargo is imposed, other country cannot get goods from that particular country. This may slow down economic growth or some country’s development since the country does not have a wider variety of goods. When it loses the opportunity to do investment and do business with that country, it also may lose the competing country in their economy. * Suffer the lack of product/ service.
* For example, Iraq was about 70% dependent on imported food prior to...
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