Economic sanctions in the context of "Unconventional warfare"

The Cold War was a period of global geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which began in the aftermath of the Second World War and ended with the dissolution of the Soviet Union in 1991. The term cold war is used because there was no direct fighting between the two superpowers, though each supported opposing sides in regional conflicts known as proxy wars. In addition to the struggle for ideological and economic influence and an arms race in both conventional and nuclear weapons, the Cold War was expressed through technological rivalries such as the Space Race, espionage, propaganda campaigns, embargoes, and sports diplomacy.

After the end of the Second World War in 1945, during which the US and USSR had been allies, the USSR installed satellite governments in its occupied territories in Eastern Europe and North Korea by 1949, resulting in the political division of Europe (and Germany) by an "Iron Curtain". The USSR tested its first nuclear weapon in 1949, four years after their use by the US on Hiroshima and Nagasaki, and allied with the People's Republic of China, founded in 1949. The US declared the Truman Doctrine of "containment" of communism in 1947, launched the Marshall Plan in 1948 to assist Western Europe's economic recovery, and founded the NATO military alliance in 1949 (matched by the Soviet-led Warsaw Pact in 1955). The Berlin Blockade of 1948 to 1949 was an early confrontation, as was the Korean War of 1950 to 1953, which ended in a stalemate.

In politics, hard power is the use of military and economic means to influence the behavior or interests of other political bodies. This form of political power is often aggressive (coercion), and is most immediately effective when imposed by one political body upon another of less military and/or economic power. Hard power contrasts with soft power, which comes from diplomacy, culture and history.

According to Joseph Nye, hard power involves "the ability to use the carrots and sticks of economic and military might to make others follow your will". Here, "carrots" stand for inducements such as the reduction of trade barriers, the offer of an alliance or the promise of military protection. On the other hand, "sticks" represent threats - including the use of coercive diplomacy, the threat of military intervention, or the implementation of economic sanctions. Ernest Wilson describes hard power as the capacity to coerce "another to act in ways in which that entity would not have acted otherwise".

Re-exportation, also called entrepot trade, is a form of international trade in which a country exports goods which it previously imported without altering them. One such example could be when one member of a free trade agreement charges lower tariffs to external nations to win trade, and then re-exports the same product to another partner in the trade agreement, but tariff-free. Re-exportation can be used to avoid sanctions by other nations.

A cold war is a state of conflict between nations that does not involve direct military action but is pursued primarily through economic and political actions, propaganda, acts of espionage or proxy wars waged by surrogates. This term is most commonly used to refer to the American–Soviet Cold War of 1947–1991. The surrogates are typically states that are satellites of the conflicting nations, i.e., nations allied to them or under their political influence. Opponents in a cold war will often provide economic or military aid, such as weapons, tactical support or military advisors, to lesser nations involved in conflicts with the opposing country.

Freedom of contract is the principle according to which individuals and groups may form contracts without government restrictions. This is opposed to government regulations such as minimum-wage laws, competition laws, economic sanctions, restrictions on price fixing, or restrictions on contracting with undocumented workers. Freedom to contract underpins laissez-faire economics and is a cornerstone of free-market libertarianism. The proponents of the concept believe that through "freedom of contract", individuals possess a general freedom to choose with whom to contract, whether to contract or not, and on which terms to contract.

International law, also known as public international law and the law of nations, is the set of rules, norms, legal customs and standards that states and other actors feel an obligation to, and generally do, obey in their mutual relations. In international relations, actors are simply the individuals and collective entities, such as states, international organizations, and non-state groups, which can make behavioral choices, whether lawful or unlawful. Rules are formal, typically written expectations that outline required behavior, while norms are informal, often unwritten guidelines about appropriate behavior that are shaped by custom and social practice. It establishes norms for states across a broad range of domains, including war and diplomacy, economic relations, and human rights.

International law differs from state-based domestic legal systems in that it operates largely through consent, since there is no universally accepted authority to enforce it upon sovereign states. States and non-state actors may choose to not abide by international law, and even to breach a treaty, but such violations, particularly of peremptory norms, can be met with disapproval by others and in some cases coercive action including diplomacy, economic sanctions, and war. The lack of a final authority in international law can also cause far reaching differences. This is partly the effect of states being able to interpret international law in a manner which they see fit. This can lead to problematic stances which can have large local effects.