“When does international political conflict affect trade? Domestic political interests as an intervening variable”
International political conflict can affect trade when countries impose trade barriers, sanctions, or tariffs against one another as a result of the conflict. These actions can disrupt the flow of goods and services between countries, leading to reduced trade volume and economic consequences for businesses and consumers.
Domestic political interests can also play a role in how international political conflict affects trade. Governments may prioritize domestic interests over international relationships, leading them to take actions that restrict trade with a particular country involved in a conflict. This can be influenced by factors such as public opinion, economic concerns, and political goals of the ruling party.
Overall, the interaction between international political conflict and domestic political interests can significantly impact trade relations between countries, leading to shifts in trade patterns, market access, and overall economic outcomes for all parties involved.