Problem

Distortion of international trade by embargoes

Other Names:
Import quotas
Banned imports
Trade embargo
Distortion of international trade by quantiative restrictions
Nature:
Governmental prohibitions of all or certain kinds of shipments to foreign countries, to serve national political, military or economic interests, frequently are ineffective, unjustified and destabilizing to international free trade. Intergovernmental organization embargoes against aggressor nations have had little impact.
Claim:
Among useless embargoes were those imposed by the League of Nations on oil shipments to Italy, and by the United Nations on armaments to China and North Korea during the Korean War. The only consequences of a grain embargo by the USA were losses for its own economy.
Aggravates:
Profiteering
Problem Type:
E: Emanations of other problems
Date of last update
04.12.2017 – 08:48 CET