The Economics of International Relations

The economics of international relations examines how countries interact through trade, investment, and economic policies. It focuses on how these interactions affect national interests, alliances, and power dynamics. Nations engage in trade to benefit from each other’s resources, leading to growth and stability. However, competition for resources and market access can also cause conflicts. Additionally, international organizations, like the World Trade Organization, help regulate these interactions, promoting fair practices and resolving disputes. Overall, economic relationships influence diplomatic ties and global stability, showcasing the interplay between economic interests and international politics.