Summer 2019 POL 241 Chap 5 "State Power and the Structure of International” By Trade Stephen D. Krasner."


Elayne Guzman
Summer 2019 POL 241 Chap 5 “State Power and the Structure of International” By Trade Stephen D. Krasner.

Quote:
   “The relationship between political power and the international trading structure can be analyzed in terms of the relative opportunity costs of closure for trading partners. The higher the relative cost of closure, the weaker the political position of the state. Other things being equal, utility costs will be less for larger states because they generally have a smaller proportion of their economy engaged in the international economy system.”

Meaning/Chosen:
     Krasner develops a model of receptiveness to open trade based on the interests of states. He sets up the model not to specifically refute other perspectives although presumably the superiority of his approach is implicit. He does specifically mention wishing to refute the idea that states open trade policy as the result of international elements beyond the control of any state or system created by states. His specific findings are that trade openness is most likely to increase when there is one dominant and ascending hegemonic state.  However, states are not always able to act in their best interest due to past policy choice constraints; therefore often some large scale exogenous event is needed to act as a catalyst, to sweep away the previous policy environment.
     For Krasner, lots of small advances states are likely to open structure due to income and growth goals. Instability is mitigated by growth and no loss of power as all in same boat. Also, large unequally developed states are likely to want closed structure. Only modest income gains, more instability in less developed countries as well as loss of power.

 Reference:
State Power and the Structure of International Trade Stephen D. Krasner World Politics, Vol. 28, No. 3. (Apr., 1976), pp. 317-347

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