Economic Vulnerability in International Relations

East-West Trade, Investment, and Finance
This study examines claims that vulnerability existed in Western economic relations with the former Soviet Union and Eastern Europe from 1970-1990, describing historical evidence that refutes these assumptions and highlights the weaknesses in their arguments.
In providing aid to the ailing economies of the former USSR and Eastern Europe, many Western governments fear that they may be leaving themselves vulnerable to fierce economic competition in the future. This study examines claims that vulnerability existed in Western economic relations with the former Soviet Union and Eastern Europe from 1970 to 1990, and shows how the historical evidence undercuts the vulnerability assumptions that fueled the Reagan administration's foreign policy and were never systematically tested.

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