The correlation between international trade and economic interdependence and the propensity to engage in conflict.

Abstract

Unlike domestic politics, which is governed by laws and regulations, interstate politics takes place in an anarchic arena. There are few laws that govern relations among states which provide opportunities for strong states to dominate weaker ones and violate their sovereignty. However, lower costs of transportation and advances in technology have given rise to new modes of interstate interaction. Countries need each other to ensure their own security and economic stability. Therefore, they have developed new approaches to interstate relations that stress cooperation for mutual gain. This reality has obliged countries to resolve their differences by other means than wars and violence. Military conflict is likely to result in a loss of economic and political benefits. One of the most important international relations is the bilateral relationship between the two largest economies in the world, United States and China. Both countries are competing for power since the rise of China as a significant economic and political power in the world. Moreover, renewed attempts by China to dominate South East Asia are likely to threaten American interests in the region. Other political tensions are rising between the two countries. Given the magnitude of economic interdependence and the prospect of losing the benefits already gained through these bilateral relations, both countries are trying to resolve their political tensions by peaceful means of conflict resolution.