Ethical Dilemma: The United States imposed a trade and investment embargo on Iran. U.S. citizens were barred

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Ethical Dilemma: The United States imposed a trade and investment embargo on Iran. U.S. citizens were barred from doing business with Iran. Proponents argued the embargo was justified because Iran has supported terrorism, is developing nuclear weapons, and is a disruptive force in the Middle East.

However, critics condemned the trade sanctions for several reasons. First, they argued the sanctions represented a double standard because the United States supports other countries that have engaged in terrorism and other bad behaviors. Second, the best way to nurture healthy dissent and civil society in Iran may be to engage the country rather than restrict economic relationships. Third, the sanctions harmed the Iranian people, who were deprived of the benefits of trade with the United States. Fourth, the sanctions were largely ineffective because other countries supply Iran with products it needs.

Finally, the sanctions harmed U.S. companies, especially oil and gas firms, which were prevented from doing business with Iran. What is your view?

Using the ethical framework in Chapter 4, analyze the arguments for and against trade with Iran. Can the United States, acting alone, compel desired changes in Iran by imposing sanctions? Justify your answer. L01

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International Business The New Realities

ISBN: 9781292303246

5th Global Edition

Authors: S. Cavusgil, Gary Knight, John Riesenberger

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