Commercial liberalism
Encyclopedia
Commercial liberalism is a branch liberal international relations theory
which states that promoting free trade
and economic interdependence
is the road to peace, and is advocated by global financial institutions and multinational companies. Along with the democratic peace theory
, is the core of many Western countries' foreign policy.
Liberal international relations theory
Unlike realism where the state is seen as a unitary actor, liberalism allows for plurality in state actors. Thus, preferences will vary from state to state, depending on factors such as culture, economic system or government type...
which states that promoting free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
and economic interdependence
Economic interdependence
Economic interdependence is a consequence of specialization, or the division of labor, and is almost universal. The participants in an economic system are dependent on others for the products they cannot produce efficiently for themselves. This physical interdependence implies corresponding...
is the road to peace, and is advocated by global financial institutions and multinational companies. Along with the democratic peace theory
Democratic peace theory
Democratic peace theory is the theory that democracies don't go to war with each other. How well the theory matches reality depends a great deal on one's definition of "democracy" and "war"...
, is the core of many Western countries' foreign policy.