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The impact on countries & companies of sanctions against Russia.
Pages 7 (1757 words)
The companies should not only be informed about the consequences, but they should also design measures which would help them to comply with such regimes. The literature suggests that…
Sanctions have always been an instrument of economic negotiation over the years. International trade has been restricted and globalizations of business operations have been hindered as a result of the implementation of sanctions. Free trade is not supported by sanctions and thus, the effect of globalization on a country’s economical conditions is found to be absent. In Russia, sanctions have brought vague and irreparable consequences. Sanctions are generally implemented to curb corrupt government practices (Drezner, 2003).
Mainly the economic and political climate was affected due to the imposition of sanctions. There had been several negative effects which not only affected Russia, but also other countries like the United States and the European Union were affected. Improvements in the situations have been experienced, but the change has not been significant. Many companies in the United States who had investment plans in Russia had to suffer losses due to restrictions on business activities. This in turn, had caused severe financial crisis in Russia as major industries which depended on international investment had to be closed down due to absence of sufficient capital and other resources. For instance, many Russian companies dealing with oil have lost investors due to abandonment of cooperation from global oil companies like British Petroleum and Exxon Mobil Corporation. Companies who exported to the Russian companies faced a grave economic downturn. The United States also suffered and especially the agricultural sector was affected as Russia was one of the main importers of the United States food products. There was drain of capital from Russia and this happened in a rapid rate. Technological advancements also suffered. Russia stopped its supply of sophisticated resources that helped NASA in various advanced programs. There were also severe implications on the European ...
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