Political and Legal Factors That Impact International Trade

Abstract

In this article, I draw on existing theoretical studies in international trade to compare the impact of the threat of financial sanctions to the reality of financial sanctions on the international economy. In further analysis, we determine whether there are differences in the use of different tools. We also examine the impact of sanctions on international trade in more common goods. This way we can check whether sanctions have a negative impact on essential goods such as food and medical supplies,
violating the Geneva Conventions that provide for the licensing of goods. This is important even when punished. To achieve this goal, we use the world model as a proof tool and a detailed analysis of longterm sanctions from 1960 to 2009. Our findings show that the effects of threatening punishment differ in quality and quantity from the effects of punishment. Restricting sanctions reduces trade flows between exporters and targets, while the threat of sanctions increases trade. The positive impact of the
threat will result from suppliers and business people focusing on storage before the actual decision to minimize the negative consequences of the penalty. We also see that different means of punishment have different effects. The negative effects of sanctions also extend to essential goods. One of the most significant changes in the world economy since the 1980s is greater trade liberalization between countries around the world, and our explanation stands out. Analyze changes in political institutions to explain policy changes. Third, they attempt to explain changes in political institutions, particularly changes in the political system that may be necessary for the large-scale economic liberalization that occurs. But changes in preferences cannot be ignored when explaining the free trade boom. Also important is the influence of international organizations. Finally, the mutual impact of economics on national politics and international politics is also important.