Economic Statcraft Essay Example | Topics and Well Written Essays - 750 words

Economic Statcraft - Essay Example Relations between our countries became soured by the hostage-taking, military confrontation and harsh allegations after the Islamic revolution. Until recently, the strained relations are further emphasized by the sanctions that are in place that has seriously dampened the economic growth of the country. Both Iran and ours. The number of sanctions in the past two decades has also been instrumental in shaping its trade policy and its partnerships in the immediate region. In reacting to the terrorist attacks and their various networks terrorizing other countries as well, the choice to place an economic sanction on Iran is in retaliation to their attacks. This is to control the persistence of such acts and present a down ward trend if applied immediately. This sanction should be considered by Iran as an act of good faith to prove that diplomatic relations that deteriorated will have no further subsequent effects on trade relations in the even they accept. The hostage-taking in the embassy in Tehran hurting and killing Americans strained the relations between the two countries although it was downplayed by the international media might change if Iran is sanctioned economically. Possibly, strategies that can be applied are trade restrictions covering the economy as it will be extremely difficult to focus on local productions while recovering lost â€Å"allies† during the hostage-taking incident. Secondly, a political sanction may work best in curbing Iran’s influence and clout in the world trade market. Persuading other countries, like Europe and Japan and other U.S. sympathetic countries to limit their involvement with Iran through diplomatic connections could greatly affect Iran’s GNP. This could be done but is r isky and costly because in the process Iran may react at the first sanction through creativity. Meaning, Iran will place its emphasis on diversifying its international trade routes in order to maximize its trade grounds