Economic Sanctions as a Tool of Foreign Policy
International Relations
- PYQs6
- Articles1
Background
Understanding the efficacy, ethical implications, and geopolitical consequences of economic sanctions is vital for analyzing international relations, trade, and global economic stability (GS2, GS3).
Economic sanctions are punitive measures imposed by one or more countries against a target country, group, or individual to achieve specific foreign policy objectives, such as altering behavior, preventing proliferation, or promoting human rights. They can include trade restrictions, asset freezes, and financial blockades.
Facts & tables
- Sanctions relief
- The U.S. lifted its naval blockade of Iranian ports and issued waivers for crude oil exports and associated services.
- Frozen assets
- The agreement involves unfreezing Iranian assets held in banks worldwide under U.S. sanctions.
- Economic pressure
- Sanctions aim to exert economic pressure, but can also have significant economic costs for the imposing country.
- Contingent lifting
- The lifting of sanctions is contingent on progress in negotiations and compliance with commitments.
| Type | Reference |
|---|---|
| Conceptual area | International Economics |
| Conceptual area | International Relations |
| Body | Role |
|---|---|
| U.S. Department of the Treasury (implied) | Implements and enforces sanctions |
Prelims angle
Prelims angle: Statement-based questions
Prelims angle: Conceptual understanding
- Sanctions as a foreign policy instrument.
- Types: trade restrictions, asset freezes, financial blockades.
- Impact on target country's economy (frozen funds, export waivers).
- Geopolitical implications and costs for imposing country.
- Used to achieve specific behavioral changes.
| Year | Framing tags |
|---|---|
| 2025 | Factual recall, Conceptual understanding |
| 2024 | Statement-based questions, Factual recall |
| 2023 | Statement-based questions, Conceptual understanding |
| 2023 | Multi-statement analysis, Factual recall |
| 2022 | Multi-statement analysis, Factual recall |
| 2018 | Factual recall, Multi-statement analysis |
Timeline
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International Economics
Conceptual area
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International Relations
Conceptual area
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Prelims 2018
Factual recall, Multi-statement analysis
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Prelims 2022
Multi-statement analysis, Factual recall
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Prelims 2023
Statement-based questions, Conceptual understanding
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Prelims 2023
Multi-statement analysis, Factual recall
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Prelims 2024
Statement-based questions, Factual recall
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Prelims 2025
Factual recall, Conceptual understanding
-
What does the U.S.-Iran agreement say? | Explained
Economic sanctions are foreign policy tools involving trade and financial restrictions, used to influence target states, as seen in the U.S. lifting sanctions on Iran in exchange for nuclear concessions.
See also
Past papers
2022–2025 · 4 questions
In the news
What does the U.S.-Iran agreement say? | Explained
Economic sanctions are foreign policy tools involving trade and financial restrictions, used to influence target states, as seen in the U.S. lifting sanctions on Iran in exchange for nuclear concessions.
Try these PYQs
Consider the following statements :
Statement-I: Recently, the United States of America (USA) and the European Union (EU) have launched the 'Trade and Technology Council'
Statement-II: The USA and the EU claim that through this they are trying to begin technological progress and physical productivity under their control.
Which one of the following is correct in respect of the above statement?
* Statement 1 is correct: Trade and Technology Council was launched by the the United States of America and the European Union during the EU-US Summit on 15 June 2021 in Brussels. * Statement 2 is incorrect: Trade and Technology council, the USA and EU does not aim to bring technological progress and physical productivity under their control. Rather the initiative intends to promote pooling of digital resources such as AI models and computing power, and make them available to partner countries to address challenges in areas such as climate change and extreme weather, healthcare or smart agriculture.
Consider the following pairs:
Country - Important reason for being in the news recently
1. Chad – Setting up of permanent military base by China.
2. Guinea – Suspension of Constitution and Government by military
3. Lebanon – Severe and prolonged economic depression
4. Tunisia – Suspension of Parliament by President
How many pairs given above are correctly matched?
Pair 1 is incorrectly matched. China has not established any permanent military base in Chad. Pair 2 is correctly matched. Guinean special forces staged a coup, captured President Alpha Conde, replaced governors with the military, and dissolved the constitution and National Assembly. Pair 3 is correctly matched. Lebanon has been experiencing a severe and prolonged economic depression since 2019, driven by political instability, inadequate reforms, and systemic corruption. The economic crisis has affected approximately 74% of the population. Pair 4 is correctly matched. Tunisian President Kais Saied dissolved the suspended parliament after lawmakers held an online meeting and voted to repeal presidential decrees. He called it a failed coup attempt.
Consider the following statements:
Statement-I: Recently, Venezuela has achieved a rapid recovery from its economic crisis and succeeded in preventing its people from fleeing/emigrating to other countries.
Statement-II: Venezuela has the world's largest oil reserves.
Which one of the following is correct in respect of the above statements?
Statement-I: Incorrect. Venezuela continues to suffer from a severe economic crisis marked by hyperinflation, shortages of basic goods, and political instability. This crisis has led to a massive exodus of Venezuelans seeking better living conditions in neighboring countries and beyond. Statement-II: Correct. Venezuela indeed possesses the world's largest proven oil reserves, surpassing even Saudi Arabia. However, despite this vast resource wealth, economic mismanagement, corruption, and international sanctions have crippled its oil industry and hindered its ability to leverage this asset for economic recovery.
India is one of the founding members of the International North-South Transport Corridor (INSTC), a multimodal transportation corridor, which will connect
The International North-South Transport Corridor (INSTC) is a multimodal transport network aimed at boosting trade between India, Central Asia, Russia, and Europe, using a combination of sea, rail, and road routes via Iran. The corridor connects Mumbai → Bandar Abbas (Iran) → Azerbaijan → Russia → Europe, with access to Central Asia.
Consider the following pairs : Area of conflict mentioned in news Country where it is located
1. Donbas : Syria
2. Kachin : Ethiopia
3. Tigray : North Yemen
How many of the above pairs are correctly matched?
* The Donbas is a historical, cultural, and economic region in eastern Ukraine. It has two heavily industrialised regions of Donetsk and Luhansk which were occupied by Russian forces last year. Hence, pair 1 is not correctly matched. * Kachin State is the northernmost state of Myanmar. In 2022, Myanmar military air * strikes reportedly killed dozens of people including civilians at a concert in Kachin State. Hence, pair 2 is not correctly matched. * Tigray is Ethiopia's northernmost region. The region is at the centre of an ongoing civil conflict involving ethno-regional militias, the federal government, and the Eritrean military that has attracted the concern of humanitarian groups and external actors since November 2020. In October 2022, the first formal African Union-led peace talks between an Ethiopian government team and Tigray forces happened in South Africa. Hence, pair 3 is not correctly matched.
Show 1 more PYQs
Consider the following pairs:
|Town|Sometime mentioned in news Country |
|-- |--|
|1. Aleppo | Syria|
|2. Kirkuk|Yemen |
|3. Mosul | Palestine |
|4. Mazar-i-Sharif|Afghanistan|
Which of the pairs given above are correctly matched?
Aleppo is a city in Syria , serving as the capital of the Aleppo Governorate, the most populous Syrian governorate. Kirkuk is a city in Iraq , serving as the capital of the Kirkuk Governorate, located 238 kilometres north of Baghdad. Mosul is a major city in northern Iraq situated on the west bank of the Tigris, opposite the ancient Assyrian city of Nineveh on the east bank. Mazar-e Sharif, the city is in Afghanistan , 35 miles south of the border with Uzbekistan. Hence, B is the correct option.