Trade sanctions

Updated: Aug 20, 2021

A restriction or prohibition by one country of trade contacts with another country of whose actions or policies it disapproves. Sanctions may be general, or applied to particular goods, especially armaments and oil. While it is difficult to enforce sanctions completely, as trade can be conducted by smuggling or the use of indirect routes, sanctions increase the costs involved in trade and so can bring some pressure to bear on the victims.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.