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摘要

Sanctions are now a central tool of governments’ foreign policy. This column examines the extraterritorial impact of sanctions on trade and welfare, and finds that the big extraterritorial burden of sanctions falls on target countries, whose trade with third countries is reduced significantly. Surprisingly, trade between senders and third countries increases due to sanctions. Thus, extraterritorial sanctions appear to be a stick and carrot for third countries, with the net effects depending on the size of the target and sender states and on the economic ties between the third countries/regions.

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