Search

Why do states trade with their enemies during war? States make deliberate choices when setting their wartime commercial policies, and tailoring policies to match the type of war the states are expecting to fight. Specifically, states seek to balance two goals–maximizing revenue from continued trade during the war and minimizing the ability of the opponent to benefit militarily from trade. As a result, states trade with the enemy in (1) products that their opponents take a long time to convert into military capability, and (2) products that are essential to the domestic economy. Furthermore, states revise their wartime commercial policies based on how well they are doing on the battlefield. An analysis of British wartime commercial policy in World War I finds that a product's conversion time into military capabilities determines if and when that product will be prohibited from trade during the war. Alternatively, domestic political pressures play only a marginal role in wartime commercial policy decisions. [ABSTRACT FROM AUTHOR]

Can countries easily imitate the United States' advanced weapon systems and thus erode its military-technological superiority? Scholarship in international relations theory generally assumes that rising states benefit from the "advantage of backwardness." That is, by free riding on the research and technology of the most advanced countries, less developed states can allegedly close the military-technological gap with their rivals relatively easily and quickly. More recent works maintain that globalization, the emergence of dual-use components, and advances in communications have facilitated this process. This literature is built on shaky theoretical foundations, however, and its claims lack empirical support. In particular, it largely ignores one of the most important changes to have occurred in the realm of weapons development since the second industrial revolution: the exponential increase in the complexity of military technology. This increase in complexity has promoted a change in the system of production that has made the imitation and replication of the performance of state-of-the-art weapon systems harder—so much so as to offset the diffusing effects of globalization and advances in communications. An examination of the British-German naval rivalry (1890–1915) and China's efforts to imitate U.S. stealth fighters supports these findings. [ABSTRACT FROM AUTHOR]