Sample Research Paper on United States Sanction

United States Sanction

Sanction is a measure imposed on a country by another country preventing it from carrying out any trade with it. This is because of many reasons, which may be a result of factors such as insecurity, failure to comply with terms and conditions, failure of the goods meeting the standard required, and many others.

Today united States has issued many sanctions on countries, which prevents them from doing any business with them. One of the countries is Russia. This was due to the Ukraine incident.

United States sanctioned Russia

This sanction was due to the Ukraine incident. If things do not get better and the US decides to impose full sanctions on Russia, many industries and businesses will be affected. This is because all the industries and businesses, which relies on import from and export to Russia will suffer.

US trade with Russia: Trade between Russia trade and the US is through both importation and exportation. This means that both US and Russia benefit from each other and full sanctions to Russia will affect both of the countries. US and Russia both create a market for their products as well as the exchange of products (Hard John P, 2003).

US main export products to Russia: US exports wheat, iron ore, rubber tires, semi-finished iron, and fertilizers to Russia. These are the first five exports to Russia. If a full sanction is given to Russia suppose the situation does not change in Ukraine, industries and businesses dealing with these products will suffer.

US main import products from Russia: Import of goods means getting goods from another country, these products, which are the imports from another country maybe not there in that country or if there are there then they are insufficient Hard John P, 2003). For this reason, those countries will have to look for those goods from another country to supplement the one they already have or have them if they do not have such goods. The following are the first five imports from Russia from the US; crude petroleum, refined petroleum, petroleum gas, coal briquettes, and raw aluminum.

2012: U.S. trade in goods with Russia

NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Details may not equal totals due to rounding.

Month Exports Imports Balance
January 2012 633.6 2,545.1 -1,911.5
February 2012 942.8 2,308.2 -1,365.4
March 2012 837.4 1,851.4 -1,014.0
April 2012 1,074.3 2,361.3 -1,287.0
May 2012 814.6 2,566.6 -1,752.0
June 2012 816.6 2,905.9 -2,089.2
July 2012 876.4 2,635.7 -1,759.3
August 2012 752.4 2,150.8 -1,398.4
September 2012 759.9 2,611.6 -1,851.7
October 2012 894.0 2,879.2 -1,985.2
November 2012 1,123.5 2,284.2 -1,160.6
December 2012 1,174.0 2,281.0 -1,107.1
TOTAL 2012 10,699.5 29,380.8 -18,681.3

Analyzing the data above in terms of import and export only:

From the table, the data shows trade between US and Russia. It is clear that the US imports a lot from Russia. Data shows that for every month, there is always a negative balance between the trades of the two countries. The negative balance shows that there is no balancing between importation and exportation between US and Russia, there is low export to Russia from the US than the imports from Russia. In other words, the US depends on Russia more than Russia depends on it in terms of the goods that Russia needs from SU. Russia has a high market in the US since it imports many of its products to the US. If a full sanction is to be there, then Russia is likely to lose a lot of markets. The US on the other hand needs many products from Russia, which it may not have or it may have insufficient. Full sanction to Russia on the US means that the US will miss getting much of the products it gets from Russia.

Graph of the data above is as shown below:

 From the graph, it is clear that exports vary a bit but are a bit stable. Falling and rising of the exports is not that much. However, it is always low as compared to the imports graph. It, therefore, is clear that exports from the US are low. US sanctions to Russia will not affect it in terms of the goods it exports to Russia since it does not export much to Russia. However, those industries, which export to Russia, will suffer in accordance with the sanction. Export to Russia may look minimal but it may bring much economical downfall to the US.

From the import graph, it is clear that the graph varies a lot. The rise and fall of the graph are not stable. At some times it rises high and sometimes it falls. However, these rise and fall do not go too low but it maintains high values. From the graph, it is clear to say that the US relies on Russia in terms of the goods it needs from it than Russia needs from it. For sanction, Russia will suffer from its large amount of product not getting market since it exports much to the US. The US on the other hand will also suffer a blow from missing some products. Many industries and businesses, which rely on these imports, will suffer from missing goods or inadequate goods.

Industries: If the US imposes full sanctions on Russia, the following industries will be highly affected directly as shown by the data and the trend by the graph. Because of this, they will oppose the economic sanction to prevent them from the effect. They will get the effect in terms of insufficient products. Otherwise, they will get affected in terms of the market.

Petroleum and coal products manufacturing industries: Petroleum and coal products are one of the products imported by the US from Russia. These industries are likely to suffer if the US imposes full sanctions on Russia. These industries will miss raw material, which is primarily imported from Russia. Because of this, these industries will not be happy with the sanction and they are likely to oppose it to spare them from suffering a blow. From the data shown above, it is clear that the US imports a lot of these products from Russia. Imposing sanctions on Russia will stop the import of these products into the US decreasing the availability of these products.

Pipeline transportation industries: Pipeline transportation is also likely to suffer. This is because it will luck commodities to transport. If there is no or less crude oil, the pipeline, which is mostly concerned with the transport of refined petroleum products and unrefined, will suffer therefore they will oppose the sanction.

Oil and gas extraction industries: These industries are concerned with the extraction of oil and gas from crude oil. It then means that if the US imposes sanctions on Russia, they may not have enough crude oil, which comes from Russia. Moreover, from the data, it is clear that the US import a lot of this product from Russia.

Plastic and rubber products manufacturing industries: These industries deal with the manufacturing of plastics and rubber products such as tires. US export rubber products to Russia. This means that if sanction on Russia is there in full, these industries will lose some market of the products they export to Russia. These industries will as well oppose the sanction of the US to Russia.

Wheat manufacturing industries: These industries have the concern of manufacturing wheat. Wheat is one of the products, which the US exports to Russia from the US. If a sanction is full sanction on Russia is given by the US, these industries will suffer the loss of the market of the products.

Oil refinery industries: These industries are concerned with the refining of crude oil. Crude oil is one of the products of import to the US from Russia. These industries, therefore, rely on Russian crude oil as one of the countries, which produce crude oil. If there is full sanction on Russia from the US government, these industries will greatly get affected. There will be not enough crude oil to make the industries run and they may even close down. Because of this, they will oppose the US sanction to Russia to avoid the threat of the effect.

Businesses: Some of the businesses that will get affected by the US sanction to Russia will include both big and small businesses. These businesses are a direct connections to the products, which are imported from Russia to the US. These businesses will oppose the economic sanction to prevent them from the effect. Starting from the top from the threat of many industries, it boils down to the businesses (Hard John P, 127). These businesses will suffer from low outcomes in terms of their income. As in the table, data collected reflects that the products from Russia are high and the imports of the product from Russia are very essential to the industries to the businesses. As mentioned in the industries, these effects will go down to the businesses since businesses are the distributors of processed products. Missing of those products in the industries directly affects the businesses down. These businesses may include:

Transportation businesses: If the US fully sanction Russia, there will be a drop in fuel such as petrol, which is vehicles used for movement. This may lead to an increase in the price of fuel hence affecting the transportation sector. Many of the investors in this sector may not be able to cope with it and may pull out. This business therefore will oppose the sanction of the US to Russia.

Fuel stations: This business is likely to get the effect in case of sanction of US to Russia. This is due to the drop in petrol fuel products. Some of the stations may not even be able to get access to the limited petrol fuel product available. This will affect the income of these businesses in terms of income and their stock and may lead to loose of customers. Some of these businesses may have termination from the owners. These businesses will oppose the sanction.

Gas suppliers: This is another business that will get the effect and because of the full sanction, they will oppose the sanction. This is because the US imports gas from Russia and if sanction and full sanction means that importation of gat to the US from Russia will definitely stop. As a result, the gas supply in the US country will go down. Gas supply businesses will be affected greatly in terms of profit and development.

Beverage: The businesses that deal with beverages use products made from the product of crude oil. These products are mostly for packaging such as plastics (Hard John P, 335). If the sanction is there, there will be a decrease in crude oil in the US. This means that the cost of production of the packaging materials from petroleum will go up. This will in turn lead to an increase in the price of those packaging materials hence affecting the beverage business.

US trade with turkey: Trade between US and Turkey involves both import and export from both countries. Both the countries trade with each other for the benefit of all of them. Turkey imports some products from the US and US imports products from Turkey (Sadik Giray, 453)

Imported products from Turkey to the US: These products are many in number. The top ones include iron and steel, nuclear reactors, machinery, and mechanical appliances, articles of iron or steel, and HTS codes for subscribers only (Sadik Giray, 538).

Export products to Turkey from the US: These products are produced in the US and exported to Turkey, they include cotton, aircraft parts, mineral fuels, mineral oils, code for subscribers only, mineral waxes, and HTS code for subscribers only (Sadik Giray, 74).

The table below gives a summary of Turkey trade and the US

2012: U.S. trade in goods with Turkey

NOTE: All figures are in millions of U.S. dollars on a nominal basis, not seasonally adjusted unless otherwise specified. Details may not equal totals due to rounding.

Month Exports Imports Balance
January 2012 997.8 534.5 463.4
February 2012 975.0 538.1 436.9
March 2012 1,207.5 559.0 648.4
April 2012 1,196.7 558.8 637.9
May 2012 1,217.6 546.2 671.3
June 2012 1,097.2 557.3 540.0
July 2012 1,078.1 492.7 585.3
August 2012 806.4 583.1 223.3
September 2012 1,034.8 424.6 610.2
October 2012 803.7 535.3 268.4
November 2012 998.1 544.3 453.7
December 2012 1,107.3 419.0 688.3
TOTAL 2012 12,520.1 6,292.9 6,227.3


From the data provided above, it is clear that US export to Turkey is higher than what Turkey imports into the US. This means that the US relies on Turkey as one of its markets for its produce. Turkey on the other hand relies on the US for getting goods from it. In this scenario, the US creates a market for Turkey products. If there is a sanction from the US to Turkey, there will be effects on businesses from both countries. Since the US, exports, more products to Turkey, in case of sanction, many of its industries will suffer from getting another market for their products. This will affect these industries. This means that many industries that produce products for export will suffer in case of sanctions. Those industries which need products imported from Turkey will not suffer a lot since the US does not import much from Turkey.

The graph below summarizes the data above for the US-Turkey trade

From the graph, it is clear that imports are generally low. There is not much fluctuation, it actually more constant. This means that US import from Turkey does not vary a lot. The US maintains the products they import and it may decrease the import as the graph shows towards August and December.

Exports on the other hand from the US to Turkey are high as shown from the graph. Although there are fluctuations, these fluctuations do not go below the import. This implies that Turkey is one of the US’s main markets. In case of sanctions, US export products therefore will suffer from getting, market.

In case of economic sanction, the industries, which will oppose it, will be those ones, which effects will fall on most in relation to the products US import or export to Turkey. The industries, which will mostly feel the effect, are those that export their products to Turkey. These industries will oppose the sanction to avoid the effects. These industries include

Ginnery industries: This is an industry, which deals with the processing of cotton. Since the US exports cotton to Turkey, it is, therefore, one of its markets places for its products. Sanction to Turkey will actually mean that this industry will lose its marketplace. In the event, this industry income will definitely go down for insufficient market to sell its products. Full sanction to this industry will affect it and because of this, it will oppose the sanction.

Aircraft parts developers industries: These industries will as well suffer effects from sanctions since they export their products to Turkey. They will also suffer from losing the market for their products. Their production is likely to go down due to the low market leading to low income for the industry.

Energy production industries: These is industries, which produce energy from nuclear materials such as the production of electricity. If there is a sanction, there may not get enough nuclear material for the production of energy. This will affect them in terms of production.

Machinery industries: These are industries, which are concerned with the use of machines. Since the US imports machines from Turkey, it is likely to have insufficient machines. This will actually affect other industries, which rely on goods produced by machines.

Building industries: These industries will directly get effects. Since the US, imports steel and iron from Turkey, there will be insufficient steel and iron in the US. This means that building industries, which use these products, will not get enough leading to the effect (Sadik Giray, 376).

Apart from the industries getting effects, businesses will also get the effects. These businesses may directly have a connection to the industries. These businesses include those that rely mostly on power such as supermarkets, hotels, housing, ICT. These businesses will be affected since there will be a decrease in the supply of products. Because of this, they will suffer the effect. For example, supermarkets, which rely much on power to keep their products fresh, in case of insufficient power, these businesses, will really suffer from the problem.

Works Cited

Hardt, John P. Russia’s Uncertain Economic Future. Armonk, NY: M.E. Sharpe, 2003. Print.

Sadik, Giray. American Image in Turkey: U.s. Foreign Policy Dimensions. Lanham: Lexington

Books, 2009. Print.