This document discusses economic statecraft, which refers to the use of economic instruments by governments to achieve foreign policy goals. Economic statecraft can involve sanctions or incentives and can be unilateral or multilateral. It has a long history but was used more in the 20th century as economies became more globalized. Economic measures are often used alongside diplomatic and military tools. Some examples of economic statecraft instruments mentioned are trade restrictions, financial sanctions, investment restrictions, and monetary sanctions. While sanctions have often failed, governments still find them useful for foreign policy. The challenges of sanctions include maximizing pain, translating pain into policy changes, sustainability over time, and impact on innocent victims. More recent developments like globalization and democracy have implications for economic state