International Finance Conflict and Free Research Proposal

By suggesting that increased amounts of free trade promote a conflict-free international market, McDonald makes a revolutionary argument that may bolster not only the international financial market, but also political and strategic alliances between states.

Both unique and significant, McDonald's argument that increased amounts of free trade between states lead to decreased amounts of conflict has strong implications not only for the field of international finance, but also for a variety of other areas of social science scholarship. Backing up his argument with statistical data, McDonald makes a convincing case that free trade does, indeed, lead to lower instances of conflict between states. Similarly, the logical organization and flow of McDonald's argument -- as he posses that the removal of trade barriers not only decreases the confidence in the state but also improves the interconnectedness between states -- lends credence to his position. A rather important study, McDonald's research attempt deserves further study and attention from leaders in the field.While few can argue against the groundbreaking nature of McDonald's study, however, it would be a fallacy to claim that the scholarship is without blemish. Further research must be done to verify the direct correlation between free trade and peaceful relations. For instance, McDonald would have arrived at the same results if an indirect correlation existed -- if, perhaps, free trade led to an increased compatibility between foreign cultures or an increased amount of communications, which consequently resulted in a higher success rate for peaceful relations between the states studied. While it is the role of further scholarship to test and prod McDonald's study, however, his initial research is not only sound, but of extreme importance to the world of international finance, as well as macroeconomics and international relations.

References

McDonald, Patrick J. (2004). Peace Through Trade or Free Trade? Journal of Conflict….....