Explain what is meant by the term "interdependence" with respect to world trade. What are its consequences for the international community of states? Give concrete examples of interdependence in your response.
What will be an ideal response?
The ideal answer should include:
1. Define economic interdependence.
2. Discuss its consequences. From a liberal perspective, interdependence inherently promotes peace. Trade-based wealth depends on international political cooperation, and violence usually does not work well in pursuing such wealth. From a mercantilist perspective, however, interdependence makes states more vulnerable.
3. Provide examples. For instance, a military conflict between the United States and China today is quite unlikely because the two actors are economically dependent on each other. They would not want to risk losing the benefits of trade. Thanks to the European Union, so are Germany and France, which fought several major wars with one another in the nineteenth and twentieth centuries.
4. Offer a compelling summary and effective conclusion.
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