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international trade and state security
International economic structures range from complete autarky to complete market openness. This structure has undergone numerous changes since the beginning of the nineteenth century. The state-power theory as put into perspective by Stephen Krasner (1976), explains that the structure of international trade is determined by the interests and power of states acting to maximize their aggregate national income, social stability, political power and economic growth. Such state interests can be achieved under free trade.
The relationship between these interests and the level of openness depends upon the economic power of states. Power is dependent upon a states size and level of economic development.
Krasner contends that distributions of potential power may vary from multipolar to hegemonic; and different international trading structures are made of either of these. The key to this argument is that a hegemonic distribution of potential economic power is likely to result in an open trading system. Since states act to maximize their aggregate economic utility, maximum global welfare is achieved under free trade.
Neoclassical trade theory posits that the greater the degree of openness in the international trading system, the greater the level of aggregate economic income.
==Theoretical perspectives==
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