Despite political sanctions being geared towards achieving a political changes in a country (e.g. a change of a regime or a change in policies), political sanctions have a far reaching impact on the corporate sector and hence on the economy not just of the country to be sanctioned but potential on the global economy due to the globalization. Consequently companies need to consider the potential impact that sanctions can have on their business in order to design appropriate strategies to deal with adverse consequences.
Hereby companies have to consider whether their business is directly affected by sanctions (i.e. either they are a target of sanctions or their business is directly constrained by sanctions) or indirectly (sanctions affect customers or suppliers of business). Companies can address these effects and try to circumvent them for example by geographically diversifying the customer base and supply chains or by deinternationalizing their activities and focussing on "safe" geographic operations.  Furthermore companies need to consider reputational losses when conducting business with sanctioned countries. 
We are going to discuss a case study during our session. The case is about the brewing company Carlsberg and how it deals with the potential risks an international company was confronted with after the outbreak of the crisis in the Ukraine. 
As a preparation please read:
- Meyer et al. (2023) --> Review article on impacts of sanctions on international firms
- Stepien and Weber (2019) --> Article on corporate adjustment strategies to sanctions 
- Case on Carlsberg so that we can discuss this case in depth during our session.
Additional reading:
- Deuber (2019) (in Russian Analytical Digest) 

Lecture