Market forces do drive change, but only if you are in the market. Countries that are supposed to be penalized by sanctions can and do find plenty of other companies to do business with and these other companies don't necessarily seek change in the country, leaving the U.S. at a loss on two fronts, diplomatic as well as economic. Foreign competitors whose governments do not restrict their ability to do business around the world aggressively exploit the U.S. policy by supplanting U.S. firms, eroding U.S. market share and technology leads in those countries. For instance, in countries where sanctions prevent U.S. companies from servicing oil and gas exploration and production, foreign-based competitors are able to charge inflated prices and generate higher profits. These profits are used to reduce prices and gain market share in countries where U.S. companies are permitted to do business.
Energy companies are particularly vulnerable to restrictions caused by sanctions.
Unfortunately, much of the world's oil and gas reserves are in countries that are considered offensive for an increasing number of reasons by the U.S. government. Much of the opportunity to offer job growth and stability to our employees will come from serving these markets outside the United States. Sanctions could severely limit our ability to participate in this growth and cost U.S. jobs. It is almost as if we should tell our new employees that their job is subject to government conscription in economic sanctions. Beyond putting us at a competitive disadvantage, sanctions are now casting U.S. companies as unreliable partners.