How can free trade reduce the likelihood of war according to liberal internationalists?

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According to liberal internationalists, free trade serves as a vital engine for peace by fostering deep economic interdependence between states. This perspective suggests that as nations become increasingly integrated through commerce, the cost of armed conflict rises, making war and sustained mutual isolation economically unsupportable.12

The liberal argument rests on several key principles:

  • Harmony of Interests: Unlike mercantilist views that treat trade as a zero-sum game, liberals argue that free trade is mutually beneficial, removing a traditional source of conflict.13
  • Economic Interdependence: By creating a division of labour across borders, states become reliant on one another for prosperity, which encourages political cooperation and rational dispute resolution.34
  • Rational Substitute for War: Commerce is viewed as a "great panacea," providing a rational alternative to violence for addressing national interests.3

While some critics argue that economic interdependence does not automatically guarantee peace and may even exacerbate inequality, liberal internationalists maintain that these ties are essential for regulating international behavior and strengthening global stability.1