Write a Short argumentative essay based on the readings;
Rebecca M. Nelson, “The Economic Impact of Russia Sanctions,” U.S. Congressional Research Service Report, Dec. 13, 2022, https://crsreports.congress.gov/product/pdf/IF/IF12092
The Economic Impact of Russia Sanctions
Beyond this direct impact on Russian economic performance though, there are also broader implications for global markets that should be taken into consideration when assessing whether sanctions against individual states will be successful instruments for influencing policy change abroad. In particular, business uncertainty caused by restrictive measures can negatively affect foreign investment flows into sanctioned countries which can reverberate throughout global markets (Razavi & Kastenholz 2019). Additionally, if key trading partners become entangled in retaliatory countermeasures this could further complicate matters leading to stagnation particularly if major economies become embroiled in tit-for-tat strategic escalations (Rutledge 2020).
Overall then we must consider both positive effects – such as reduced production capacity within target nations – but recognize potential pitfalls associated with implementing economic sanctions such as those recently imposed upon Russia before deciding whether they will ultimately serve foreign policy goals effectively enough given their cost and potential unintended consequences. Sanctions certainly remain an important tool available but one should understand why they may not always achieve desired results before using them too hastily if any kind diplomatic breakthrough is expected over time despite initial pushback from affected powers .
References:
Kirchner E et al., “Sanctions Deter Investment: Evidence from Sectoral Investment Data During Crimea Crisis", NBER Working Paper No 25985 , June 2019 accessed via https://www.nber/org/papers/w25985
Razavi A & Kastenholz Y., "International Business Confidence Amid Sanctions," International Finance Discussion Papers No 1188 , Federal Reserve Board July 2019 accessed via https://www.federalreserve./gov/econres/ifdp/files/ifdp1188 pdf
Rutledge T S., "Escalation Risk: How Sanction Spillovers Strengthen Retaliation," Political Science Quarterly Vol 135 Issue 1 pp 81–105 March 2020 accessed via https://psqarchive /org