17 Sep 2022

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Trade Sanctions: Why They Must Stop

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The debate on whether trade sanction should be promoted or done away with has generated mixed reactions from many interested parties across the world. The decision on whether to scrap away trade embargo against some nations has made renowned world super powers take a non-commitment approach to the issue. Trading blocs have been experiencing mixed reactions from their member on whether to restrict business relationship with some other nations. For many years now, trade restrictions against a country have been based on the political relationship between the countries. Countries that have been having dictatorial leader have been the most hit by trade restriction policies an action. Trading block, developed countries, and developing nations come up with trade sanctions against a country with the aim of influencing the government in question to come up with political activities that the other countries favor or believe they have a collective right . Trade sanctions have at one point been effective while at times they have been a total failure. Trade sanction policies have been regarded as malicious and insensitive to the modern day requirement of international trade. Trade sanctions have had more severe effects those good results. Many nations have suffered either directly or indirectly from trade sanctions. Many scholars have been debated on whether industrial actions such as trade sanctions and trade protection initiatives should be used to solve political differences among nations. This paper seeks to explain how trade sanction policies and actions have not been of no help in solving the desired need in the modern world. 

Trade sanctions have been said to be economic initiatives that are being used to correct political differences among nations. Countries with dictators have been hard hit by economic sanctions . The trade sanctions against the dictatorial government have been having adverse effects on the countries in question (Lindsay, 2009) . Trade sanctions have not been effective in making the countries change their dictatorial form of government. They do not help the citizens of the nation when restrictive economic policies are instituted against a country. As a matter of fact, the citizens are subjected to more torture due to trade policies making the business environment more punitive. In many countries across the world, the dictatorial governments have been reluctant to change their way of governance to have the restrictions lifted. Sovereignty principles in many countries do not allow governments bow to pressure created by having economic sanctions influence policies or political activities. Many Countries have reacted to political sanctions by seeking the products or services from other nations that are friendly to them. The situation has been complicated with the ever-increasing complexities of international trade. The situation is not about to change shortly . Governments are adopting more favorable policies that can help their economies thrive in amidst of trade sanctions in many parts of the world. Dictator believes their political systems are better and no form of intimidation be it economic can make them change their system. Countries need to adopt a better measure to address anomalies in the system of government. Relying on economic sanctions to influence a nation’s choice of political ideology has proven to be of no help. Citizen of the country suffers the most at the end of it instead of being assisted (Collins and Bowdoin, 2011) . Nations that have had a period of economic sanction have seen their population of poor people increase. The international community will not be helping the local situation in a country if what they are doing will be contributing to making the citizens of the nation poorer. It is time trading blocs realize that economic sanctions are ineffective means of solving countries problems. 

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Trade sanctions are known to influence the mind and attitudes of citizens in a country toward international cooperation negatively . Many people once affected by the negative impacts of trade sanctions develop ill feeling towards certain nations or trading blocs (Deardorff and Stern, 2010) . Therefore trade sanctions promote enmity as opposed to fostering unity in the modern world. Economies do not grow by having them increase the number of enemies but by increasing the number of nations they can cooperate . Racism and ethical differences among countries promote disunity. For a long time trade has been an activity that has been bringing people together. People share culture by having them interact through trading activities. Communities across the world have been interacting in the process of exchanging their good and services. Trade sanctions limit the interaction of people they can not share cultures and have a common understanding on various issues affecting new communities around the globe. Activities that promote individualism in the modern world should not be encouraged . Trade sanction in many ways makes people not associate with each other (Hufbauer, Schott, and Elliott, 2010) . Nations need to see business as a mean of allowing its people interact and share their culture. Through the sharing of culture differences among people are eliminated making the people live a life that is miserable and full of hatred with the other people. The action that makes people minds see other as enemies should be discouraged. The world needs to be more integrated, and as such, activities that promote unity among people should be encouraged . There is a need for a global leader to think of better ways of punishing a government instead of resorting to using trade embargoes. Affecting people’s attitude through trade is a bad idea . Once people develop a negative attitude toward each other, it becomes hard for them to cooperate towards achieving their goals. 

There exist no logical link between economic sanctions and democratic movements. In many nations, citizens are suffering economically due to differences in political systems and ideologies. There is a need for trading blocs not be used to solve their political differences. Politics should be separated from political activities (Allen, 2010) . There should be a boundary between political relations and economic interactions, allowing governments define economic relations and not allowing economic ties bring about political unity is unfair means of communication . Trading blocs need to stick to policies that will promote greater interaction among them and not create division due to dissimilarities in political ideologies. To a large extent, trade sanctions have been instituted based on variations and misunderstanding in the political relations. Similarly making economies policies basing on political ties and not the performance of the economy has never proved to be the best way for nations to carry out their affairs. Democracy and trade are not directly related (Smith, 2008) . Countries should respect different forms of government be they dictatorship or aristocratic governments to help have normalcy in trade. 

Trade sanctions have provided the basis upon which nations have gone to war. May nations do not want to bear the effects of trade marginalization alone. Many times , a government will retaliate, and in the process, a physical confrontation between nations may erupt. Cold wars among nations have been prompted by countries coming up with restriction economic policies against other countries . The great world wars were partly influenced by trade sanction among nations . The issue becomes involved once the relationship among nations becomes complicated and sour. Trade should bring nations together and not foster enmity (Lindsay, 2009) . There is a need for world leaders to do away with trade policies that pose a threat to world peace and international cooperation. Peace and international cooperation have been of much help in helping the nation achieve their economic, social as well as political goals. Therefore, going forward, countries or trading blocks should never consider trade restrictions as a means of correcting sour relations. Cooperation should be fostered more instead of governments creating enmity among them. Suspicion among nations also become more when economic sanctions are instituted against a government . When there is trade restriction among nations, governments become more hostile to each other. Even countries in a trading block become more suspicious abut each other activities; one nation thinks the other is cooperating with its enemies thus making the country access product they expected the country to lack by having trade restrictions made against the nations. Popular economies around the world have been having a rough time trying to adhere to trade sanction policies strictly . Suspicion among nations promotes the negative growth of economic activities among the countries . The result of suspicion have been costly, and they have affected both the nations that come up with the financial restriction policies and the countries that the plans have been made . The over the cost of trade restriction has been lowering many government gross domestic products and the net income from abroad for the nations. 

Trade restriction limits the growth and development of international or regional trade. Trade embargos also restricting the volume of goods and services exchanged among countries . The effect has made the local market for goods and services be congested as the market can not find a place to sell its surplus produce. Similarly, trade restrictions have made certain market lack products and services they require and desire the most to have to meet particular market demands. Limiting business activities is never the best way to go if the potential of an economy or an economic bloc is to be realized (Deardorff and Stern, 2010) . Nations which need to expand their market size and improve the quality and quantity of products traded in its market need to rethink their strategies. Trade protection and restriction policies have been more harm than good. Market liberalization has aimed to increase market sizes for products and services. Having retrogressive policies such as limiting trade activities by coming up with trade restriction policies is not the right way to go about issues. With the advancement in technology trade among nations should be better enhanced. Nations should be denied access and participation to economic activities in other countries by having trade prohibitions in place. Secondly, technology has allowed people to conduct business without physically being in contact (Collins and Bowdoin, 2011) . The situation has been complicated when the service can be performed online. Restricting trade among people has become less efficient with the recent technological development across nations. People have been affecting business transaction with ease thus countries that hope to use trade embargoes to limit trading activities among its citizens have been spoilt for choice. They need to rethink about their actions. Technology has made the world a global village where people can interact with ease as compared to the world that existed several years ago. Policies that restrict trade among nations are obsolete and need to be revised . Nations have devices better ways of cooperating with constant moving. Those who hope trade restriction will be effective in affecting how people are conducting their activities should be ready for a rude shock. Systems have changed so has the business world. Value to be found in an activity or product is more important than restriction laws that may only benefit individual or organizations (Hufbauer, Schott, and Elliott, 2010) . There has to be a change in approach. The economic value of activity should be considered more than penal restriction laws. 

Trade restriction has contributed to the distortion of world trade. Policies that promote worldwide economic trade have been affected by trade ban policies. The policies have made it difficult for integration of economic activities. Multinational find it hard to operate in nations that experience trade prohibitions. Some multinationals working in countries or regions that have been having trade restriction have been hard hit . They have had high fines struck against them making them incur losses sometimes even closing business in the process the host nation’s losses revenue and it population working for the multinational rendered jobless. Moreover, trade restriction hinders the expansion of companies (Deardorff & Stern, 2010) . It’s hard for nations to operate efficiently in an environment that is full of restrictions and punitive policies. In the same way, lack of economic goodwill makes the firms experience many challenges that could have been avoided had the nations not experienced trade restriction problems. Activities that distort international trade should not be supported by all means. Governments should think about the benefits associated with international commerce before coming up with trade restriction policies against other nations or countries. Efforts and initiatives to scrap all existing trade restrictions should be supported . There is a need to have trading blocks change their approach towards differences in economic opinions. Laws that govern international trade should be all inclusive. At no point should a nation be left out of international commerce because of differences in ideology. Trading blocks and leading economies in the world should rethink their approaches which result in the formulation and implementation of trade restriction policies (Allen, 2010) . The issue has been involved across the world, but dialogue should be embraced to find a lasting solution to the problems. Trade restrictions should not be allowed to affect the flow of good and services in the world market. 

Trade restrictions create inefficiency in markets. The global marketplace has many parameters that should be taken into consideration in the process of formulating a new rule of operation. Trade restriction policies are always based on political reasons. Sometimes the political reason does not completely justify why trade restriction policies should be adopted. Many economies around the world are self-regulating and do not need to be influenced politically to operate better. Limiting economic activities creates unwanted shortages and surplus supplies in certain markets. The situation can be corrected by having better policies in place and not restricting trade (Collins and Bowdoin, 2011) . Trade restriction has resulted in smuggling activities within an economy. If the market could be open or operating according to desired rules of market liberalization, activities of smuggling goods could have been done away . Since a market requires certain products, not allowing traders bring the products to particular market makes them think of developing unethical means of having the products sneak into the target market. Traders explore lope holes in the current market and device mean they will use to engage with the market and in the process affect their business transactions (Lindsay, 2009) . The issue has been complicated with the advancement in human understanding and cooperation across the world. In the process of smuggling goods into a nation, the people fail to pay taxes and risk going to jail if found. The issue becomes more complicated with the advancement in transport and communication systems across the world compared to how it wolf have been without the development. Nations need to rethink of better to handle economic problems without thinking of resorting to trade restrictions. There is a need for governments to be more willing to buy than thinking of limiting their levels of cooperation. In addition, trade restriction lead to the production of inferior goods and services within nations . Since the market has more demand than the available supply, existing producers will over stretch their production facilities and in the process make goods not meet the required standards. The effectiveness of trade restriction in making nation produce good that meet the world accepted standards have been questionable. The market should be done liberally to allow competition and in the process allow development of better means of production. Trading blocs need to rethink their approaches of how to help a nation or a region have better production mechanism in place (Hufbauer, Schott, and Elliott, 2010) . Policies such as trade restriction are not good for the economy. Similarly, trade restriction affects a nation growth by presenting the country from accessing individual with the required skill to perform various functions. New product expertise in a country stagnates as the result of the state will not be allowed in the international market. Production activities are best improved when a government is involved in the activities with the aim of competing in the global market. Nations have to think of better ways of promoting the production of better quality goods and services. Trade restriction is selfish business practices that are meant to not only benefit few nations but ensure other countries continue to languish in abject poverty. 

Trade restrictions go against progressive principles of economic growth such as market liberalization. Restricting the growth of the market is a primitive ideology advanced through market prohibition policies such as trade embargoes (Deardorff and Stern, 2010) . Nations or trading blocks that promote trade restrictions policies should be encouraged to do away with the policies with the aim of helping the economy expand. Governments need each other to develop better. Without proper laws, in place, progressive economic policies will not be well implemented, and their impact on the market will not be felt . Nations need to change their perceptions about trade bans. They should know that trade bans limit the growth of various sectors in the market and are responsible for the rising cases of unemployment in the world. Economist has argued that market restriction is inactive in dealing with the current market issues currently in existence. The market should be made more liberal to get full benefits associated with a free market. It is never easy to have a free market but different governments across the world can help make the situation attainable. Economic Cooperation among nations is critical to making economic growth more evident (Smith, 2008) . Nations and regional bodies need to make it clear on policies they are advancing to safeguard their financial interests as well as that of other countries. 

The Economic restriction has proven to be a high business for any state or regional trading bloc to undertake. When a nation has instituted a trade embargo against another nation, it has to develop a mechanism to ensure no trade links between the countries exist. Most of the times the nations have been setting up a secretariat to ensure economic cooperation among the countries is completely severed . The secretariat is never of much help (Lindsay, 2009) . Their commercial viable is lower the benefits associated with their work. The people selected to observe the implementation of trade restriction policies could best be used to perform other duties economic importance that having to seat and ensure not economic engagement among people of different nations is taking place. The resources utilized by the Secretariat can also be sued widely in other productive activities (Lindsay, 2009) . There is a need for a developed nation which is fond of coming up with trade restriction policies to think of using the resources in helping the developing countries deals with the situation that is promoting the issuance of trade prohibitions. 

Trade restriction has been less effective in allowing smaller economies develop and be able to compete better with the developed countries . By making the market size smaller, the bigger firms in the economy dominate the economy and in the process small businesses opt out (Collins and Bowdoin, 2011) . However, if the market could have been bigger, the larger company could concentrate on the international market leaving the smaller companies to compete to meet the demands of the local market. The situation has helped many smaller businesses grow to their full potential. Equally, Trade restriction reduces global economic growth. Trading activities across nations reduce and in the process make the size of goods and people involved in the trade to go down (Deardorff and Stern, 2010) . The situation needs to be corrected by allowing free movement of factors of productions. 

With trade restriction in place, customer satisfaction is least guaranteed . The local market will lack a variety of goods customers desire to meet their needs (Deardorff and Stern, 2010) . In the process, customers have to contend with whatever small they have. In the process customers with the ability to spend more and even invest in various economic activities will be forced to use their resources in other activities. The cost of production in an economy that has many trade restrictions also goes up. The economy will fail to sustain itself making various players in the economy lose their investment in the market. Due to trade restriction policies, the market lacks better resources and the required raw material to be used in production. Acquisition of factors of production in the local market can be costly or sometimes the local economy may completely lack the required inputs to be used in production. Restricting the economy fro trading with other economies further complicates the ability of the economy to acquire the factors of production it desires. For better performance of the market the market should be made more liberal (Allen, 2010) . Due to the problems associated with market restriction is has become an offensive market strategy. 

From the above discussion, it can be seen that trade restriction policies and the mechanism are not the best to handle economic differences. Political differences should not be settled using punitive economies policies such as restricting the ease with which nations should be trading with other countries . The effects associated with trade bans outweigh the perceived benefits. Regional trading blocs need to reexamine their policies and explore peaceful means of relating before thinking of resorting to primitive policies such as restricting trade among nations. Trade bans limit the growth of the market for goods and services. Without trade restriction, the market cold has expanded and been made more competitive. Defining business is never the best way to approach issue affecting economic interactions. Trade bans have also been ineffective in achieving their desired purposes. Nations need to remain united to avoid suspicion and enmity associated with trade restrictions. Trade should aim at binding people and not create divisions among them. Nations should least think of economic sanctions as means of disciplining a country going forward. 

References  

Hufbauer, G. C., Schott, J. J., & Elliott, K. A. (2010). Economic Sanctions Reconsidered : History and current policy (Vol. 1). Peterson Institute. 

Smith, K. E. (2008). The use of political conditionality in the EU’s relations with third countries: How effective?. European Foreign Affairs Review, 3(2), 253-274. 

Lindsay, J. M. (2009). Trade sanctions as policy instruments: A re-examination. International Studies Quarterly, 30(2), 153-173. 

Allen, S. H. (2010) The determinants of economic sanctions success and failure. International Interactions, 31(2), 117-138. 

Deardorff, A. V., & Stern, R. M. (2010). What you should know about globalization and the World Trade Organization. Review of International Economics, 10(3), 404-423. 

Collins, J. J., & Bowdoin, G. D. (2011). Beyond Unilateral Economic Sanctions: Better Alternatives for US Foreign Policy Crisis . 

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