Negative Impacts of Trade Sanctions on the Growth of Countries

Topics: International trade, Gulf War, United States Pages: 5 (1531 words) Published: November 3, 2014
Introduction

As the international trade grows rapidly these years, the trade sanctions are increasing at the same time. It was widely used in modern society; many countries prefer solving political or economic problems by trade sanction. NO one knows whether it really works, anyway, it catches the pubic attention as an important role. Trade sanction was carried out in different forms, they reduce the quality of imported products from some specific countries, and reduce exported items. Those countries believes that it will work someday, however, the reality is that trade sanction can not really solve problems efficiently between different countries, some times ,it often brings disasters which totally Against the original intentions.

This essay attempts to show the negative impacts brought by trade sanctions. It will firstly discuss the reason why so many countries feel like using trade sanctions. Following this, it will explain why trade sanctions worse the relationships. Finally, it will look at what damages trade sanctions bring.

1. Reasons for using trade sanctions
1.1Economic weapon
In modern society, economy is one of the most important character to measure a country’s comprehensive national strength. Nearly every country regards economy as a serious thing, and try her best to gain the maximum benefits. In recent years, the economy of many developing countries developed quickly. The goods which made in developing countries poses threat to developing countries. The low-cost labor in developing countries contributes to the low price of goods, when them sold in developing countries, the low price will attract far more customs, who used to purchase native goods. On the other hand, the developed countries government will pay for the imported goods, which can be avoided in the past. It is a large number of costs. What is more, the imported goods will diminish the sale of local goods, and many local companies suffer economy problems. All of these lie heavy upon the government. Take America and China for example, in 2007, the exports from America to China were $ 65.24 billion, at the same time, the exports from America to China were $ 321.51 billion, the trade deficit of United States with China reached $ 256.27 billion, an increase of 10.2%. In this case, the U.S. government thought that they had to take action to change the situation. The government began to limit the number of Chinese imports, and impose anti-dumping duties to Chinese enterprises, they believe that this will reduce the trade deficit and save a considerable part of local enterprises.

1.2 Political Weapon
After two world wars, the worldwide war no longer erupted, but local conflicts and wars have continued. In some areas, there are still a lot of people suffering from the war. Meanwhile, other countries have to choose their camps for various reasons. Their different political positions lead to new political conflicts. Gary Clyde Hufbaue(2011)indicates that trade sanction is an activity which is used to change the objective country's policy , a country sever or threaten to sever the traditional trade or financial links with the target country intentionally. From this we can see that: First, economic sanctions is not entirely a "passive response" which made by some countries to the target countries, many times, it is a kind of proactive action which is intended to against the target countries. Second, economic sanctions is aim to satisfy the own political interests of the country who adopt this activity, and its essence is to achieve political goals through economic pressures. Also take America as an example,The United States announced a emergent state to North Korea, and took trade sanction, She totally prohibited exporting goods to North Korea after the new-clear test. Since then, the United States expanded sanctions for the existence of weapons-grade nuclear in North Korea.

Whether a country will adopt trade sanctions or...
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