Embargo

Author Topic: Embargo  (Read 234 times)

Offline munna99185

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Embargo
« on: February 25, 2014, 02:36:06 PM »
An embargo is the partial or complete prohibition of commerce and trade with a particular country. Embargoes are considered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is imposed. Embargoes are similar to economic sanctions and are generally considered legal barriers to trade.
Companies must be aware of embargoes that apply to the intended export destination. Embargo check is difficult for both importers and exporters to follow. Before exporting or importing to other countries, firstly, they must be aware of embargoes. Subsequently they need to make sure that they are not dealing with embargoed countries by checking those related regulations, and finally they probably need a license in order to ensure a smooth export or import business. Sometimes the situation becomes even more complicated with the changing of politics of a country. Embargoes keep changing. In the past, many companies relied on spreadsheets and manual process to keep track of compliance issues related to incoming and outgoing shipments, which takes risks of potential errors. ERP software these days help companies to be fully compliant on such regulations even if they are changing on a regular basis. If an embargo situation exists, the software blocks the transaction for further processing.
The United States imposed an embargo on Cuba on February 7, 1962. The US embargo on Cuba remains one of the longest-standing embargoes. The embargo was embraced by few of the United States' allies and apparently has done little to affect Cuban policies over the years. Nonetheless, while taking some steps to allow limited economic exchanges with Cuba, President Barack Obama reaffirmed the policy, stating that without improved human rights and freedoms by Cuba's current government, the embargo remains in the national interest of the United States. [Source: wikipedia.com]

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University