Economic Warfare Project

For this purpose, countries utilise the electronic and communication technology as the weapon that helps political as well as military leaders to get instant and accurate information about the economic condition of rival nations, with strategies they are using for strengthening the capabilities of enterprises to conquer the international markets. This would help in developing better strategies to weaken their economic conditions and retaliate over their actions, to enhance their own power.

Economic warfare is defined as a state of interference within international economic relationships, with the purpose of improving the military, economic and political position of a nation. As per the views of classical economists, today, the world is visualised in a manner, where enterprises and individuals of every nation strive for maximising their utility and profitability, by utilising the lowest cost resources (O'Rourke, 2019). In this regard, each country focuses on specialising in production under which all economic units possess comparative advantages. Along with this, private interests which include high profits, focus on buying raw materials from the cheapest markets and distributing the finished products to the best places, where economic conditions are relatively high. Through military aspects, economic warfare includes two basic dimensions - a country uses it as an adjunct for military operations and the second one is to strengthen the establishment of peacetime military.

However, in both terminologies purpose is the same, i.e. a nation seeks to acquire the maximum resources possible for its military uses that contribute to reducing the potential war-making capabilities of the enemy. These resources can be acquired to improve trade of own nation from others, which provides direct support to military operations. In wartime, economic warfare is also concerned with preventing resources from falling into the hands of the enemy, where actions are taken sometimes to weaken the economic state of rival nations.

Economic warfare can also be defined as a threat to use means of economy against a nation to weaken its economy, which may reduce its military and political power. It includes embargoes, tariff discrimination, boycotts, embargoes, suspension of aid, freeze the capital assets etc. For this purpose, a country tends to change its policies and behaviour to undermine its own ability to conduct effective relationships with other nations. In this regard, countries that are mostly engaged in economic warfare deny the adversary access to technological, financial and physical resources to weaken the economy of its rival countries. Among the range of economic means embargo or partial embargo is considered as one of the strategies for anticipation of possible war, where a nation may apprehend the distinct possibility of war with another country. Therefore, to mitigate this threat, economists decide to restrict trade which may enhance the potential in terms of war-making of prospective enemies. In this regard, if there were no embargo then rival countries would be in a war state as it could be. One such example was the United States which had frequently employed the preceding military operations with the support of some European nations during the 1950s to 1960s, against Europe, the Soviet Union and Communist China.

Economic warfare is also taken as a two-sided affair where, the intended victim who is in the state of this war is expected to retaliate (Rode, 2019). So, under this state, a nation which faces such warfare can retaliate in three manners - (1) The Nation will be passive and accept the possible solution that the initiator proposes, which is considered a fair phenomenon. (2) The victim nation may fight back to defend itself from the state of warfare either by breaking the embargo, paying off accumulated debts via borrow from other nations or selling accumulated balances on discounts. Along with this, victim countries can also fight back by developing better economic policies that potentially harm the initiator on other economic terms. (3) Here, both initiator and victim countries engage in economic warfare with different purposive goals and achieve success. The perfect example of this situation is the US-China trade war, where both countries have imposed high tariff rates on trade to affect the economic condition of each other. The US-China Trade war is one of the ongoing economic warfare between the two largest national economies of the world.

Here, in 2018, to promote domestic goods, the President of this nation Donald Trump imposed tariff rates and set some trade barriers to reduce the trade deficit. To retaliate, China has also developed policies for strengthening its economy and recovering from the loss due to imposed tariffs. China in today's 21^st century, is considered the second most powerful nation in terms of economy, therefore, to crush the US within economic warfare, it provides funds to other nations such as Venezuela, to build political ties (O'Rourke, 2019). Along with this, Chinese enterprises are also engaged in soccer stadium diplomacy, mostly in countries of Africa which are rich in natural resources, to make investments and construct brand stadiums. This would help China in producing more goods and services at the low cost of production and selling at the international market, strengthening its economic power. In this regard, beating other nations in economic warfare and weakening their powers results in heavy damage without any bloodshed.

As economic warfare is considered the name of the third world war, therefore, Its effectiveness depends on numerous factors, which include the capacity of the adversary to produce the restricted commodities internally (Whyte and Mazanec, 2018). For example, the United States' efforts to oust Fidel Castor Fidel from power in Cuba through maintaining an embargo for decades, had frustrated via increased trade activities between Canada and Western European countries, including Cuba and Mexico also. Along with this, respective warfare is sometimes also known relatively as an alternative or inexpensive complement to military engagement, which imposes the costs on initiating countries by denying access to any kind of economic exchange with other targeted nations. An instance of this statement is that residents in the US paid higher costs for those goods which could have been imported from Cuba and other nations on more cheap rates.

Also read:- Globlisation And Nationalism - Comparative Analysis

In economic warfare with military and political means, success depends on how nations utilise their balanced combination of talent as well as military knowledge for trained enterprises to conquer the international market as much as possible. This success also results from well-based usage of knowledge to produce the best products and distribute them at the international level which affects the economy of other nations negatively.

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