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Economic sanctions and US international business interests

  • Hossein Askari

    ()

    (The George Washington University, International Business and International Affairs, Washington)

  • John Forrer

    ()

    (The George Washington University, Institute for Global Management and Research, Washington)

  • Hildy Teegen

    ()

    (The George Washington University, International Business and International Affairs, Washington)

  • Jiawen Yang

    ()

    (The George Washington University, International Business and International Affairs, Washington)

Economic sanctions are seen as a foreign policy instrument less severe than military engagement but more potent than diplomacy. The assessment of the economic impact of sanctions invariably focuses on direct bilateral trade, with little regard to indirect costs. In the case of sanctions on Iran, the real cost to Iran and the U.S. is not so much due to reduced trade but to factors such as missed investment and joint venture opportunities, especially in the energy sector. The significant size of these costs for Iran will make it difficult for Iran to resume business as usual with U.S. companies whensanctions are lifted, and for U.S. energy companies, their long-term competitiveness in Iran and also globally will be reduced.

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File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9904/9786
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Article provided by Banca Nazionale del Lavoro in its journal Banca Nazionale del Lavoro Quarterly Review.

Volume (Year): 55 (2002)
Issue (Month): 220 ()
Pages: 55-69

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Handle: RePEc:psl:bnlqrr:2002:14
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  1. Gary Clyde Hufbauer & Jeffrey J. Schott & Kimberly Ann Elliott, 1990. "Economic Sanctions Reconsidered: 2nd Edition," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 82, December.
  2. Gary Clyde Hufbauer & Kimberly Ann Elliott & Tess Cyrus & Elizabeth Winston, 1997. "US Economic Sanctions: Their Impact on Trade, Jobs, and Wages," Working Paper Series Working Paper Special (2), Peterson Institute for International Economics.
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