globalization forces leaders to choose between economics and politics and

Globalization forces leaders to choose between

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globalization forces leaders to choose between economics and politics, and because  economic benefits are readily observable, opponents can better infer the concealed  (subjective) valuation for political objectives. No war - interdependence Gartzke et al 2001  [Erik Gartzke, Guan Li, and Charles Boehmer. “Investing in Peace:  Economic Interdependence and International Conflict.” International Organizaiton 55, 2.  Spring 2001. Pp. 391-438.  ] Second,  instead of deterring conflict, interdependence can convey credible signals, obviating the need for costly military contests. Actors’ behaviors potentially inform observers about the value of strategic variables, dissipating private information Interdependent states that  endure opportunity costs in pursuit of political objectives differentiate themselves from  other, less resolved, competitors. To the degree that nonviolent conflict allows observers  to identify opponents, costly signaling also allows efficient ex ante bargaining . States seek to  obtain settlements while competing for preferable terms.  War is less often necessary when states possess  nonviolent methods that credibly inform. No war – economic disincentives Gartzke and Li 2003  [Erik Gartzke, Columbia University, and Quan Li, Pennsylvania  State University. “War, Peace, and the Invisible Hand: Positive Political Externalities of  Economic Globalization.” International Studies Quarterly 47. 561-586. 2003.  ] AP Adam Smith identified in markets autonomous forces with serendipitous effects. Here, we discuss how globalization facilitates costly  signaling among states.  Global markets have the ability to punish leaders’ statements by  reallocating capital abroad. If in turn leaders have incentives to sooth economic markets,  then globalization presents politicians with a dilemma. Leaders are forced to choose  between stable markets and the pursuit of political objectives . Under traditional international conditions, states possess only crude instruments such as cheap talk and force with which to compete. Leaders must sometimes go to war to prove  their willingness to do so.  Globalization provides an additional mechanism for competition  beyond cheap talk, but short of military violence. Leaders of integrated states who  threaten a neighbor encourage investors to flee Unresolved leaders may prefer to  abandon political objectives rather than antagonize investors.  Resolved leaders pursue demands in spite
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of the economic consequences, differentiating themselves from less resolved types and allowing opponents to more effectively fashion mutually acceptable ex ante bargains.4
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