I will begin by giving a liberal account f the relationship between the economy, the state and power.
Liberal idealism in international politics did not re-emerge, after the devastation f the Second World War, until the 1970s. Rapid advances in technology, the growth f organisations like the European Community, and the impact f events like the 1973 oil crisis pointed towards evidence f growing interdependence between states.
At the same time liberal literature made significant inroads into the rigid inside/outside, domestic/international distinctions characteristic f realism, with the emergence f trans-national relations and world society.
Modern interdependency theory uses free trade and the removal f barriers to commerce as prof to their claims. "The rise f regional economic integration in Europe was inspired by the belief that the likelihood f conflict between states would be reduced by creating a common interest in trade and economic collaboration amongst members f the same geographical region."
European powers, instead f resolving their differences militarily, would cooperate within a commonly agreed economic and political framework for their mutual benefit. Eventually cooperation between states would increase and broaden as mutual advantages could be gained. ...