Question

2. JS Mill's description of a third benefit of trade is “the economical advantages of commerce are surpassed in importance by those of its effects which are Intellectual and moral.”
   • For what reasons might trade promote peace?
   • How well established is the link between peace and trade?
   • What other factor (think government structures) may help explain the link between trade and reduced conflict?

Answer 1

Part 1:-
A. According to capitalist peace theory, the trade between some countries make them commercially more interdependent and thus reduces the intensity of wars between them.
B. Countries which have trade relations would lose a lot of war prevails between them.
C. Free trade causes an increase in the ideas and thus promotes the level of understanding between the two.

Part:- 2
A. Peace reduces the cost of trade between two or more countries by establishing healthy relationships. Reaverse is also true that healthy trade promotes peace.
B. Trade increases understanding among various diverse economics thereby promoting peace.
C. Trade encourages cooperation between different countries thereby promoting peace.Reverse is also true that trade peace promotes healthy trade.

Part:- 3
There are various other factors that explain the link between trade and reduced conflicts.
There are various policies that the government forms for the trade with other countries.
Following all these policies, the government establishes healthy realations of a country with other countries, thereby reducing the conflicts between them.