How economic sanctions work
Process map by Brian. 9 steps, 1 layer. Tags: politics, world, economy, news.
- The government: An action triggers a response: an invasion, abuses, weapons
- The government: Choose the tools: freeze assets, ban trade, cut banks off
- Banks: Banks block payments to listed people and firms
- Companies: Companies stop doing business to avoid penalties
- The target country: The economy feels it: currency, inflation, shortages
- The target country: Find workarounds: other trade partners, shell companies
- The government: Does the target change its behavior?
- The government: Ease the sanctions in stages
- Other countries: Tighten and enforce; other countries may or may not join