This past semester, the Institute for International Political Economy had the pleasure of hosting Professor Quan Li from Texas A&M University for a guest lecture at the Vienna University of Economics and Business.

Professor Li, an expert in international political economy, shared insights from his latest research exploring a timely and complex question: Do U.S. sanctions financially harm American firms? His talk delved into the economic consequences of sanctions, highlighting how the actual impact on U.S. businesses might be less clear-cut than often assumed. Drawing on the high-profile case of U.S. sanctions against Huawei, he examined how different types of firms – those staying, exiting, or newly entering supply relationships – experienced varying profitability outcomes in response to these geopolitical measures.

Professor Li’s presentation offered not only rigorous empirical analysis but also a valuable perspective on the broader implications of financial diplomacy. He presented data from a sample of nearly 300 firms, including prominent American technology companies like Nvidia, Apple, and Qualcomm, whose operations were disrupted due to export controls and regulatory measures targeting Huawei. The findings challenged common assumptions, suggesting that while some firms suffered losses, others managed to enter the market post-sanctions and achieve higher returns, thanks to stronger internal capabilities such as robust R&D and marketing strength. His nuanced approach spurred lively discussions about the strategic behavior of firms under geopolitical pressure and the mixed evidence surrounding sanctions’ effectiveness.

For students in our WUPOL program – and especially those specializing in Politics and Money – Professor Li’s visit was an exceptional learning opportunity. It was particularly impactful for those enrolled in the qualitative methods course, who attended the talk and discussed how qualitative research approaches, such as interviews with firm executives, could complement the quantitative findings by uncovering the motivations and strategic calculations behind firms’ responses to sanctions. Events like this embody our Institute’s mission: to bridge rigorous academic research with real-world policy and business challenges, equipping our students with diverse analytical tools and critical thinking skills essential for navigating the complex terrain of international political economy.

Interested in our research and want to learn more?

Sign up for our mailing list for regular updates from the Institute. You can find the subscription form here: Subscribe to the newsletter.