International Economic Relations

Featured

Increased international trade, and the lowering of barriers to such trade, frequently results in improved international relations, but it can also lead to trade wars and tariff disputes. RAND research explores bilateral and multilateral economic relations; describes how they affect global alliances, globalization, and the economic health of nations; and recommends methods to develop, encourage, and maintain these relations among diverse nations and cultures.

  • Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, and Litecoin placed on a PC motherboard, June 29, 2021, photo by Dado Ruvic/Reuters

    Commentary

    Cryptocurrency Should Be Added to the U.S.-Japan Trade Deal

    Jul 28, 2021

    As the Biden administration begins to define its approach to international trade, and the Suga administration looks to further tighten cooperation with the United States, it may be worth reconsidering the exclusion of cryptocurrency from the U.S.-Japan trade deal. Substantial economic equities are at stake for both sides.

  • Russia's President Vladimir Putin during a videoconference meeting with members of the Lomonosov Moscow State University Board of Trustees at the Novo-Ogaryovo residence, December 24, 2020, photo by Mikhail Klimentyev/Reuters

    Commentary

    Sanctions Targeting Russia's Defense Sector: Will They Influence Its Behavior?

    May 20, 2021

    In response to recent Russian cyber espionage, interference in U.S. elections, and the poisoning of opposition leader Alexei Navalny, President Biden announced a new round of sanctions and expulsions of Russian officials. But will these sanctions hurt Russia's defense industry enough to curb the Kremlin's behavior?

Explore International Economic Relations

  • U.S. President Donald Trump and China's President Xi Jinping meet business leaders at the Great Hall of the People in Beijing, China, November 9, 2017

    Commentary

    America's New Security Strategy Reflects the Intensifying Strategic Competition with China

    The United States unveiled its National Security Strategy last week, describing China as a revisionist power that actively competes against the United States and its allies and partners. China had strong words of its own in response. Both will need to navigate the relationship in a way that supports stability and prosperity for both countries.

    Dec 27, 2017

  • Morning commuters are seen outside the New York Stock Exchange, July 30, 2012

    Commentary

    Economic Instability Endangers Democracy

    The Western political community is retreating from its own institutions. The problem stems from the fact that the health of democracies is crucially dependent on their economic growth rate.

    Dec 16, 2017

  • News Release

    News Release

    UK Likely to Be Economically Worse-Off Outside the EU Under Most Plausible Trade Scenarios

    The UK economy is likely to suffer under the most probable post-Brexit trade scenarios. Leaving the EU with no deal and operating under World Trade Organization (WTO) rules would lead to the greatest economic loss for the UK, reducing GDP by nearly 5 per cent, or $140 billion, 10 years after Brexit, compared with EU membership.

    Dec 12, 2017

  • Women work at a tungsten mining factory in Zhongshan, China, June 2, 2017

    Testimony

    Taking Action Against U.S. Import Dependence

    When a country that controls its materials production dominates the supply chain for a critical material—as China does with tungsten—it's harder for American manufacturers to compete. But the United States can take steps to help mitigate this issue.

    Dec 12, 2017

  • Britain's Prime Minister Theresa May is welcomed by European Commission President Jean-Claude Juncker at the EC headquarters in Brussels, Belgium, December 8, 2017

    Commentary

    The Burdens of Brexit

    The economic consequences of Brexit are likely to be negative across a wide range of scenarios, including the most likely outcomes that the UK now faces. If the UK leaves the EU with no trade deal it could lose 4.9 percent of GDP, or $140 billion, after 10 years.

    Dec 12, 2017

  • Project

    The Economic Impact of Brexit

    The UK is likely to be economically worse off outside of the European Union under most plausible scenarios. Leaving the EU with no deal and applying World Trade Organization rules would lead to the greatest economic losses for the UK.

    Dec 11, 2017

  • David Davis, Britain's Secretary of State for Exiting the EU (left), and Michel Barnier, the EU's chief Brexit negotiator, talk to the media ahead of negotiations in Brussels, Belgium, September 25, 2017

    Report

    Potential Impacts of Brexit on UK, EU, U.S. Economies

    The UK economy is likely to suffer under the most probable post-Brexit trade scenarios. Leaving the EU with no deal would make the UK nearly 5 percent poorer in 2029 than if it had remained. The most beneficial scenario would be a trilateral UK-EU-U.S. agreement, but that is unlikely in the current political environment.

    Dec 11, 2017

  • Tool

    Calculator Explores Five “Hard Brexit” Scenarios

    An interactive calculator based on RAND's After Brexit report allows users to examine how negotiations are likely to affect the economies of the UK, EU, and U.S. in the 10 years after Brexit negotiations conclude.

    Dec 11, 2017

  • European Commission Vice-President Andrus Ansip addresses a news conference on Digital Single Market at the EU Commission headquarters in Brussels, Belgium May 10, 2017

    Commentary

    Why the EU Single Market Has Still Not Reached Its Full Potential

    The EU Single Market aimed to promote intra-European trade, increase competition, create more jobs and make Europe more attractive to foreign direct investment. The economic benefits of the Single Market are clear, but closer integration requires political buy-in from individual member states and the EU.

    Nov 8, 2017

  • U.S. President Donald Trump and U.S. first lady Melania visit the Forbidden City with China's President Xi Jinping in Beijing, China, November 8, 2017

    Commentary

    Sustaining America's Economic Strength in the Asia-Pacific: A Narrowing Window of Opportunity

    Ali Wyne urges President Trump to reassure U.S. allies that the United States has both the capacity and the willingness to maintain an enduring presence in the Asia-Pacific. That reassurance must be grounded in credible geo-economic pledges.

    Nov 8, 2017

  • People walk at the Grand Bazaar, a day after the presidential election, in central Tehran, Iran, May 20, 2017

    Commentary

    Killing Iran's Economy Won't Help the U.S.

    Iran's economy is likely to be damaged by any new U.S. sanctions, with foreign investment having already slowed in response to President Trump's rhetoric. The biggest losers will not be the Iranian regime but the Iranian people, whose striving the U.S. has long hoped would bring about a less antagonistic Iran.

    Oct 31, 2017

  • U.S. Secretary of State Rex Tillerson with Indian Prime Minister Narendra Modi before their meeting in New Delhi, India, October 25, 2017

    Commentary

    Despite Tillerson, U.S. Won't Abandon Pakistan for India

    There is no new U.S. policy towards Pakistan and there won't be one soon. As long as the U.S. has troops in neighboring Afghanistan, it will be reliant on Pakistan for logistical support, transit, and Islamabad's influence with both the Taliban and its affiliated Haqqani Network.

    Oct 27, 2017

  • A container is loaded on to the first Chinese container ship to depart after the inauguration of the China Pakistan Economic Corridor port in Gwadar, Pakistan November 13, 2016

    Commentary

    China's Field of Dreams in Pakistan

    China is four years into joint planning and construction of the China-Pakistan Economic Corridor, a vast economic development package. Beneath the surface, Beijing is testing a new “build it and they will come” model for delivering economic development and foreign aid.

    Oct 16, 2017

  • Arctic waters

    Q&A

    Policy Challenges in the Arctic: Q&A with Abbie Tingstad

    Abbie Tingstad discusses how the opening of the Arctic by climate change could strain relationships among Arctic nations, how these changes will affect indigenous communities, and what to make of Russia's military buildup in the region.

    Oct 6, 2017

  • Saudi Arabia's King Salman (L) speaks with Russian Deputy Prime Minister Dmitry Rogozin (R) during a welcoming ceremony upon his arrival in Moscow, Russia, October 4, 2017

    Commentary

    King Salman and Putin Deals Leave the U.S. Out in the Cold

    Riyadh plans to invest in Russian energy assets and possibly arms. The deals will lead to the manufacture of arms in Saudi Arabia and likely the transfer of military technology. These agreements thwart the U.S.- and EU-led sanctions regime and send an important signal to Washington.

    Oct 4, 2017

  • An F/A-18 Super Hornet lands on the deck of the USS Ronald Reagan in the South China Sea, September 30, 2017

    Report

    Risk of U.S.-China Conflict Should Not Be Ignored or Exaggerated

    Armed conflict between the United States and China isn't likely. But the possibility is real enough to warrant prudent policies and effective deterrence. America should continue to support China's neighbors while drawing Beijing into cooperative security endeavors.

    Oct 2, 2017

  • U.S. President Donald Trump is shown on a large screen as he addresses the 72nd United Nations General Assembly at U.N. headquarters in New York, U.S., September 19, 2017

    Commentary

    The Multilateral Order Makes America Stronger

    Skeptics have suggested that U.S. interests and support for the international community are somehow mutually exclusive. In fact, international institutions, rules, and norms have mostly worked in the U.S. interest, not against it. The Trump administration has an opportunity to build on that record with a strong agenda of reform and support.

    Sep 26, 2017

  • Russian President Vladimir Putin and Belarusian President Alexander Lukashenko walk to watch the closing stage of the joint war games Zapad-2013 (West-2013) at the Gozhsky firing range in Grodno, September 26, 2013

    Commentary

    Joint Military Exercises Distract from Complex Russia-Belarus Relationship

    Analysts and military leaders have concerns that Russia will use the Zapad 2017 exercise in Belarus as a smokescreen to put personnel and equipment in place, and keep it there. But the deep ties and history of cooperation between the two states make the chances of that happening unlikely.

    Sep 13, 2017

  • Headquarters of the United Nations in Geneva, Switzerland

    Report

    Measuring the Health of the International Order

    The liberal international order that has been in place since 1945 is relatively stable. But the order is threatened by geopolitical and domestic socioeconomic trends that call into question its assumptions. U.S. support and engagement over the coming decade will be essential.

    Sep 5, 2017

  • An American flag on a fence in the prairie

    Commentary

    American Isolationism Isn't New

    Isolationism is a recurring temptation of American foreign policy. Responding to new and unforeseen challenges, however, the United States has repeatedly resisted that temptation and risen to the demands of global leadership. Is it different today?

    Aug 1, 2017