Question

Do countries’ participation in the international economy push them toward competition and conflict or does trade foster peace?

Answer 1

IN most of the cases trade has fostered peace in the international arena. Trade allows the nations to achieve prosperity which they cannot achieve alone and that makes them dependent on each other for co operation. When there are so many interests aligned with the other nation, it is difficult for the nations to go for war.

For example, China and Japan. China and japan has a bitter past. But the trade between the two nations are above 300 Billion dollar. If they go for war it will directly affect the people in both the nations as they will be loosing on those 300 billions dollar every year. That will increase the cost of war and prevent it.

Another example is Europe. Before formations of a united Europe and a common market. They have witnessed some intense rivalry and wars. But now all the resources are used for the benefit to the people of the nations.