How do economic sanctions function?

Economic sanctions are tools used by countries or international organizations to influence the behavior of other nations without resorting to military force. The primary mechanism of economic sanctions is the imposition of restrictions on trade and financial transactions with specific countries. These restrictions can target various sectors, including trade in goods, services, and financial assets, and aim to exert pressure on the sanctioned government to modify its policies or behavior to align with the objectives of the sanctioning body.

In this context, when countries enact economic sanctions, they typically have foreign policy goals, such as enforcing international law, promoting human rights, or curbing aggressive actions by a nation. The underlying principle is to create economic hardship for the sanctioned country, thereby encouraging it to alter its course of action.

The other choices do not accurately reflect the nature of sanctions. For instance, military intervention entails direct involvement in a conflict, while sanctions focus on non-military methods. Voluntary agreements made by countries usually refer to trade treaties or partnerships rather than sanctions, which are coercive in nature. Lastly, while incentives for foreign investment can affect economic behavior, sanctions are punitive measures, not incentives. This distinction is critical in understanding how sanctions operate within the realm of international relations and economic policy.