Embargo

This article is about the economic term. For press embargoes, see Embargo (journalism).

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In international commerce and politics, an embargo is the prohibition of commerce and trade with a certain country.

Related Topics:
Commerce - Politics

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It is usually declared by a group of nations against another one, in order to isolate it and to put its government into a difficult internal situation, given that the effects of the embargo are often able to make its economy suffer from the initiative.

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The embargo is usually used as a political punishment for some previous disagreed policies or acts, but its economical nature frequently leaves space enough for doubts about the real interests that the prohibition gives advantage to.

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Although the law of the United States does not prohibit participation in an embargo, it does prohibit participation in a secondary embargo. This occurs when one country pressures a business to stop doing business with a third country over issues which the business is not directly involved. Not only is an American business required not to participate in a secondary embargo, but is also required to report all attempts to get a business to participate in a secondary embargo. The situation which led to these laws are attempts by Arab countries to prevent American companies from doing business with Israel.

Related Topics:
Law - United States - Arab countries - Israel

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The typical reaction is the development of an autarky.

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