“Nations may go to war with words and weapons, but commerce finds a way to cross every battlefield.”

Trading with the Enemy: The Paradox of Commerce and Conflict

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A continuous challenge has faced nations throughout history. Since they have struggled to chose between conducting business transactions with enemies and using economic restrictions as weapons against them. The practice of “trading with the enemy” goes beyond economic policy to become a fundamental political as well as legal and ethical consideration. Official hostilities prove insufficient to stop economic interdependencies between countries which governments often label as necessary for national security. The contradiction between conducting business with adversaries forces us to evaluate three fundamental aspects: business participation in worldwide conflicts plus the force of economic warfare and the unanticipated effects of economic restrictions on trade.

Governments use commerce restrictions against adverse nations to stop financial advantages from bolstering opposition strength during wars as well as periods of political tension. The American president received specialized power through the Trading with the Enemy Act (TWEA) to limit economic activity between the United States and enemy nations during World War I. Through this legislation authorities gained power to confiscate enemy properties together with the…