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Key Takeaways

• Economic sanctions are used by governments and international organizations to influence behavior through financial and trade restrictions.
• Sanctions can disrupt supply chains, capital flows, commodity markets, and access to global financial systems.
• Targeted economies often respond by diversifying trade partners, increasing domestic production, or adopting alternative payment systems.
• Sanctions may also create unintended economic consequences for businesses, investors, and third-country economies.
• Over time, sanctions can accelerate broader shifts toward regionalization, financial diversification, and geopolitical risk management.