THE IMPACT OF THE RUSSIAN- UKRAINE WAR ON INTERNATIONAL TRADE
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- NGN 3000
ABSTRACT
This study was carried out to examine the impact of the russian- ukraine war on international trade. Specifically, the study examine the factors responsible for the Russian - Ukraine war. The study also evaluate the impact of the Russian-Ukraine war on European trade. Lastly, the study investigate the global prospect of the Russian - Ukraine war. The study adopted the historical analysis. The findings revealed that the global economic consequence of the invasion was a global supply chain disruption. This manifested through energy supply shocks, and trade supply shocks. It led to rising energy prices, rising commodity prices, and a rise in food prices, thereby leading to a rise in global inflation in many countries. The implication is that geopolitical conflicts tend to have spillover economic effects to other countries and that such conflicts do not have isolated effects on the sanctioned country. The Russian-Ukraine conflict has shown that sanctions against a warring country is not an optimal solution because it has spillover effects into other countries who are not part of the conflict, especially when the warring countries are trade partners of other countries who are not involved in the war. The study thereby recommend that Political leaders should put in effort to discourage conflicts like the Ukraine- Russia conflict, and should use negotiation as a conflict resolution tool. Future studies can assess whether conflict resolution through negotiations are very effective in pacifying countries that go to war to protect their regional influence.
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