Rethinking Sanctions Efficiency

... businesses’ behavior in terms of their attempts to further violate U.S. sanctions. The main question to answer is: Do penalties imposed by U.S. regulators (mostly by the U.S. Department of the Treasury) change the behavior of business in favor of compliance with the U.S.’s demands? To answer the question above this paper tests two hypotheses. Hypothesis 1 postulates that business violates sanctions regimes in order to maximize its profits in general or to increase the profits of its branches ...