Question

Explain when political failure of an embargo happens

Answer 1

Embargo is basically an official ban on trade or ban on any other commercial actuvity. Here we are going to discuss when political failure of an embargo happens:-

1. When government legally stops the trading of certain goods and services.

2.Let us try to understand it through few examples:-

a. In 19th century, Southern United States were the dominant producer of cotton. They forced the British government to recognize confederacy . The enbargo was a complete failure having no impact on the US economy.

The next embargo was imposed in 1973 In Yom Kippur War, was still in a better condition. Americans endured gasoline rationing and long lines.

In Arab countries embargo was a failure to achieve political objectives.

The main objective is to isolate a country and cause economic hardship and problem to the country to show the dominance of the government intervention.

It may happen for safety reasons too.

Political failure of embargo happens when the target country's national decision makers have that much power to provoke the embargo that they can stick to that policy even if the economy is in different condition. The economic costs are considered of the country even its too extreme.

This type of situation generally hapoens in dictatorship based country's like Nepal, etc. where they can show their suprior power by retreating from the policy. They put their restiction on the trade of certain goods and services.