Embargo

Definition

An embargo is a government order that restricts or prohibits trade with a specific country or the exchange of certain products. It is often imposed for political reasons, such as to influence a foreign government's actions or to express disapproval of its policies. Embargoes can apply to various goods, including weapons, food, and technology, impacting economies and diplomatic relations significantly.

5 Must Know Facts For Your Next Test

1. Embargoes can be comprehensive, banning all trade with a country, or they can be selective, targeting specific goods or services.
2. Countries may impose embargoes in response to human rights violations, military aggression, or nuclear proliferation concerns.
3. Embargoes can have significant economic impacts on both the targeted nation and the countries imposing the restrictions, potentially leading to shortages and increased prices.
4. The effectiveness of an embargo often depends on international cooperation; if some countries continue trade with the embargoed nation, it may diminish the intended impact.
5. Historical examples include the U.S. embargo against Cuba initiated in 1960 and the various sanctions against Iran over its nuclear program.

Review Questions

• How do embargoes function as a tool for influencing foreign policy and what might be their intended outcomes?
  • Embargoes function as a strategic tool for governments to apply economic pressure on another country in hopes of changing its policies or behaviors. The intended outcomes can range from compelling a government to alter its stance on human rights issues to halting aggressive military actions. By restricting trade and access to vital goods, the embargo aims to create internal pressure that may lead to political change.
• Discuss how an embargo could affect both the target country's economy and the economy of the country imposing the embargo.
  • An embargo can severely disrupt the target country's economy by limiting access to essential goods, leading to shortages and potential social unrest. Meanwhile, the country imposing the embargo may also face economic repercussions, such as loss of market opportunities and increased prices for alternative sources. The interconnectedness of global economies means that while an embargo aims to harm the target state, it can inadvertently create challenges for the imposing country as well.
• Evaluate the role of international cooperation in the success of an embargo and what challenges arise when countries do not align in their policies.
  • International cooperation plays a crucial role in the success of an embargo since widespread compliance amplifies its effectiveness. When multiple nations join together in imposing sanctions, it creates a more significant economic impact on the targeted state. However, challenges arise when some countries choose not to participate or continue trading with the embargoed nation. This lack of alignment can undermine the embargo's effectiveness, allowing the targeted country to sustain itself economically through alternative channels and reducing the pressure intended by the initial measures.

Related terms

sanction: A sanction is a penalty or coercive measure imposed by one or more countries against another country to influence its behavior, often related to international law violations.

trade agreement: A trade agreement is a contractual arrangement between countries outlining the terms of trade between them, including tariffs, trade barriers, and rules of trade.

quarantine: A quarantine is a restriction on the movement of people or goods to prevent the spread of disease or pests, which can sometimes intersect with trade issues.