Sanctions Beyond Borders: Multinational Corporations and U.S. Economic Statecraft

Sanctions Beyond Borders tests the assumption that economic globalization and the decline of U.S. hegemony give overseas corporate behavior a free reign in defying U.S. imposed sanctions abroad. It examines the use of sanctions from the early Cold War era through the sanctions decade of the 1990s, including the Helms-Burton Law and the Iran-Libya Sanctions Act. On the one hand, the book shows that multinationals are often susceptible to U.S. influence because they fear political fallout. At the same time, the book demonstrates that even though the use of sanctions has been widely promoted by interest groups, Congress, and the general public, the effect of sanctions has fallen short on many counts. Especially when it comes to preventing economically significant transactions with proscribed nations by key multinational corporations, sanctions are shown to be weak and costly measures that damage diplomatic relations.

Table of Contents:
Part 1 Extraterritorial Sanctions from the Early Cold War Era through the Pipeline Sanctions Chapter 2 Extraterritorial Sanctions: Policy Rationales and Legal Controversies Chapter 3 Sanctions at Bay? The Rise and Partial Decline of Extraterritorial Sanctions Chapter 4 Sanctions Defiant? The Reagan Administration, Extraterritorial Sanctions and the Lessons of the Pipeline Case Part 5 Contemporary Case Studies Chapter 6 The Decline and Partial Return of Foreign Subsidiary Sanctions Chapter 7 Direct Investors: Instruments of Coercion or Hostages of the Target State? Chapter 8 Targeting Foreign Corporations: Helms-Burton and the Iran-Libya Sanctions Act Chapter 9 Think Globally, Sanction Locally: Grassroots Campaigns Against Multinationals in South Africa, Burma and Nigeria

About the Author :
Kenneth A. Rodman is the William R. Cotter Distinguished Teaching Professor of Government at Colby College.

Review :
Sanctions Beyond Borders is an excellent historical account of U.S. sanctions with an extraterritorial effect since WW II, fully up-to-date in its examination of the impact of domestic politics and NGO-campaigning. The book is also a sophisticated testing of current theories about multinational companies in the global economy indicating, they are less state-less as often thought and more linked into their political, cultural and legal domestic setting. As Rodman shows, when America's relative economic influence was supposedly so great in the early Cold War, U.S. officials felt more constrained by their sense of duty to allies and allied institutions. Now, for better or worse, it is harder for U.S. leaders to discern the common good. Overall, in this definitive and very readable work, the author is rightfully skeptical of sanctions as a foreign policy instrument in a competitive environment where target countries usually have plenty of alternatives. Highly recommended for college, university, and professional library collections. If reading this book, and pondering the twenty or thirty episodes that he [Rodman] describes made me think through the problem of subsidiaries and sanctions once again, it may inspire other readers as well, whether they be policymakers, lawyers, or students of contemporary events. Timely and provocative. Sanctions Beyond Borders is arguably the single best introduction to the topic today. It is comprehensively researched, theoretically sophisticated, rich in empirical detail, and well written. Aside from those scholars interested in sanctions specifically, the book should also appeal to those investigating domestic-international linkages, methodologists interested in testing theories against case studies, Cold War historians, and teachers of U.S. policy looking for interesting case study material to integrate into their courses... This original and provocative book challenges conventional wisdom. Rodman demonstrates that forces besides hegemonic power explain the success or failure of extraterritorial U.S. sanctions: domestic politics, public opinion, corporate interests, and back channel influence are all at work. Timely and provocative. Sanctions Beyond Borders is arguably the single best introduction to the topic today. It is comprehensively researched, theoretically sophisticated, rich in empirical detail, and well written. Aside from those scholars interested in sanctions specifically, the book should also appeal to those investigating domestic-international linkages, methodologists interested in testing theories against case studies, Cold War historians, and teachers of U.S. policy looking for interesting case study material to integrate into their courses.