East-West Trade, Embargoes and Expectations

Alasdair Smith

No 139, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: There are significant differences between the United States and Western Europe on policy towards East-West trade. Some of this is attributable to the divergent economic interests of different countries, but all countries' policies are influenced by political as well as economic considerations. This paper focuses on the role of expectations in distinguishing between the view of economic relations as giving rise to positive linkages with political relations and the alternative view of economic ties as providing political leverage. Multinational cooperation may be an important channel through which the economic system reacts to political risks, and a formal model is presented to analyse this issue. The conclusion of the paper is that there may be only very limited scope for the use of trade embargoes as a political and strategic tool.

Keywords: East-West Trade; Embargoes; Expectations; Multinational Corporations; Political Relations (search for similar items in EconPapers)
Date: 1986-11
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=139 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:139

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=139

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().