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Economic sanctions and US international business interests

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Hossein Askari & John Forrer & Hildy Teegen & Jiawen Yang, 2002. "Economic sanctions and US international business interests," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 55(220), pages 55-69.
    • Handle: RePEc:psl:bnlaqr:2002:14
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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9904/9786
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    References listed on IDEAS

    as
    1. 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.
    2. International Monetary Fund, 1995. "Islamic Republic of Iran: Recent Economic Developments," IMF Staff Country Reports 1995/121, International Monetary Fund.
    3. International Monetary Fund, 2000. "Islamic Republic of Iran: Recent Economic Developments," IMF Staff Country Reports 2000/120, International Monetary Fund.
    4. 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, January.
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    Cited by:

    1. Zornitsa Kutlina-Dimitrova, 2017. "The economic impact of the Russian import ban: a CGE analysis," International Economics and Economic Policy, Springer, vol. 14(4), pages 537-552, October.
    2. Dizaji, S.F. & van Bergeijk, P.A.G., 2012. "Early phase success and long run failure of economic sanctions. With an application to Iran," ISS Working Papers - General Series 544, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    3. Roberto Lampa & Nadia Garbellini, 2022. "Sanzioni, shock da offerta e inflazione: la rilevanza del conflitto russo-ucraino (Economic sanctions, supply-side shock and inflation: relevance of the Russian-Ukrainian war)," Moneta e Credito, Economia civile, vol. 75(298), pages 95-99.
    4. Ghahroudi Mehdi Rasouli & Chong Li Choy, 2020. "The Macroeconomic Determinants and the Impact of Sanctions on FDI in Iran," Economics and Business, Sciendo, vol. 34(1), pages 15-34, February.

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    More about this item

    Keywords

    International Business; Joint Venture; Policy; Trade;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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