Trade Sanction

What is a 'Trade Sanction'

A trade sanction is a trade penalty imposed by one nation onto one or more other nations. Sanctions can be unilateral, imposed by only one country on one other country, or multilateral, imposed by one or more countries on a number of different countries. Often allies will impose multilateral sanctions on their foes.

BREAKING DOWN 'Trade Sanction'

Import tariffs, licensing costs and administrative hurdles are often enforced, making it more difficult if not impossible for the nation(s) bearing the sanction to trade with the nation imposing it. An example of a trade sanction is the set of stringent penalties the United States' imposed against Cuba from 1963 to 2000. In the year 2000 some of the sanctions were repealed, specifically those on medical and agriculture goods.

RELATED TERMS
  1. Insider Trading Sanctions Act Of ...

    Legislation that allows the SEC to seek a civil penalty, of up ...
  2. Capital Blockade

    A form of economic sanction in which a country or a group of ...
  3. Multilateral Netting

    An arrangement among multiple parties that transactions be summed, ...
  4. Multilateral Trading Facility - ...

    A trading system that facilitates the exchange of financial instruments ...
  5. Civil Money Penalty - CMP

    A punitive fine imposed by a civil court on an entity that has ...
  6. Office Of Foreign Asset Control ...

    A department of the U.S. Treasury that enforces economic and ...
Related Articles
  1. Economics

    How Effective Are Russian Sanctions ? (RSX)

    Russia’s Eurobond issuance is an important one to watch to get a sense where the sanctions regime is going next
  2. Economics

    Understanding Iran Sanctions by the US

    Considering US sanctions have been in place for almost 40 years, and Iran is still considered a troubled region, can we say they have been effective?
  3. Investing

    The Pointless, Persistent US Sanctions Against North Korea

    The U.S and its allies have been imposing sanctions against North Korea for decades. The latest sanctions over hacking of Sony Pictures may not have much effect.
  4. Economics

    How Embargoes Affect International Business (XOM, BP)

    One nations may impose an embargo against another as a tool of diplomacy. But it's businesses on both sides of the border that pay the costs.
  5. Investing News

    How Russian Sanctions Impact Western Companies

    Last month the EU agreed to extend sanctions first imposed on Russia last year for the hostile involvement in Ukraine and set to expire at the end of this month.
  6. Economics

    Industries That Will Benefit From Lifting Iran Sanctions (BA, RDS.A)

    After sanctions related to Iran's nuclear program are lifted, a number of global industries should benefit from the opening up of second largest country in the Middle East.
  7. Economics

    Current Countries Under A Western Embargo

    We look at which countries the United States and European Union have imposed an imposed embargoes on and why.
  8. Economics

    A Ban On SWIFT Could Hit Russia Where It Hurts Most (MA, V)

    A SWIFT ban on Russia could have a crippling effect on its debt-servicing ability and overall economy, and just might force a change in its policy.
  9. Economics

    3 Possibilities If Sanctions Against Iran Lift

    What would happen if sanctions against Iran were lifted?
  10. Investing News

    Who Benefits from Lifting Iran Sanctions? (TOT, RDS.B)

    There are multiple parties that will benefit from the lifting of Iranian sanctions and the return of the country to the international community.
RELATED FAQS
  1. Which nations' economies have reserve ratios?

    Learn more about the inconsistent imposition of depository banking reserve ratios, and why the United States stands alone ... Read Answer >>
  2. What are common reasons for governments to implement tariffs?

    Gain a basic understanding of a government-sanctioned import tariff, what it is meant to accomplish and common reasons for ... Read Answer >>
  3. What economic indicators are most used when forecasting an exchange rate?

    Discover what economic indicators are most widely used to forecast a country’s exchange rate and how various factors influence ... Read Answer >>
  4. Is it possible for a country to have a comparative advantage in everything?

    Learn whether one country can have a comparative advantage in everything and what the difference between comparative advantage ... Read Answer >>
  5. How does inflation affect the exchange rate between two nations?

    Understand how inflation can affect foreign exchange rates of a currency and how it is just one of many economic factors ... Read Answer >>
  6. What is the difference between a nation's current account deficit and its currency ...

    Learn the respective meanings of the two terms, current account deficit and currency valuation, and understand the relationship ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center