Weird question: Suppose a chunk of Mexico broke off with the intention of establishing a Minarchist/ soon to be Ancap society. Mexico and the US don’t approve of this move so they don’t recognize whatever is set up as the new government.
What happens to trade? This new country is totally pro-free trade, with absolutely no customs agents or visa requirements. Do Transnational companies already situated in this new country have to close their doors (due to their home country regulations)? Can this new country export goods into countries that have not recognized it’s independence?
What if it’s an outright Cuba-Style embargo? Would development be hampered? Would the embargoing countries be harming themselves because black markets and smugglers would move in to meet the demand?
Assuming an outright embargo would be justified to the Americans or Mexicans (I really don’t see how), such an embargo would be unenforceable. TheCuban embargo is not enforced because the US is good at that, but simply because Cuba can offer little in return for imports. Hence, the embargo is merely sanctioning Cuba’s total bankruptcy, not hurting its economy that much (that is not to say that he embargo is justified).
A free trading country next to the US? No embargo would ever succeed (without requiring a carrier group, that is), although it would undoubtedly hurt the economy. Still I’d pick a minarchist under embargo over a ‘free-trading’ socialist any day.
Real world example: Albania’s communist regime traded ‘freely’ (was under no embargo) for 50 years, and people saw no foreign goods at all, while 93’s Albania (quite e free place after all) would have grown repidly even under embargo.