Why countries trade with each other while fighting
13 days ago
- #wartime trade
- #economic history
- #international relations
- Britain traded with Germany during WWII despite being at war, importing dyes.
- Historical examples include Britain trading with enemies in WWI, and India-Pakistan trade during conflicts.
- MIT political scientist Mariya Grinberg highlights that states often trade with enemies during wars, weighing economic benefits against military risks.
- Wartime trade involves calculating the utility of goods to the enemy and the duration of the war.
- Grinberg's book 'Trade in War' explores economic cooperation across enemy lines, the first comprehensive study on the topic.
- Modern wartime trade began with the Crimean War and the establishment of neutral rights for shipping goods.
- States prioritize long-term economic stability, trading goods that don't immediately aid the enemy's war effort.
- Germany's 1917 dye exports to Britain were based on a miscalculation that the war would end soon.
- Trade relationships do not prevent conflicts, challenging the idea that economic interdependence deters war.
- States frequently misjudge the length of wars, leading to unpreparedness and strategic errors.