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INTERNATIONAL JOURNAL OF ADVANCED RESEARCH IN COMMERCE, MANAGEMENT & SOCIAL SCIENCE (IJARCMSS) [ Vol. 9 | No. 3 (III) | July - September, 2026 ]

Economic Sanctions, International Trade and Foreign Direct Investment: Channels and Spillovers

Dr. Vandana Goswami

Economic sanctions have become an important instrument of geopolitical policy, with potentially substantial consequences for international trade and foreign direct investment (FDI). This study qualitatively investigates the effects of economic sanctions on bilateral trade flows and cross-border investment, focusing on direct economic costs, trade diversion, and changes in international economic linkages. The analysis further considers whether sanctions are associated with changes in FDI inflows and whether third-country economies experience trade diversion as firms and governments adjust their international economic relationships.

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DOI:

Article DOI: 10.62823/ijarcmss/9.3(III).9586

DOI URL: https://doi.org/10.62823/ijarcmss/9.3(III).9586

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