ABSTRACT
Economic cooperation may take a variety of forms with diverse benefits and different distributions among participants. One of the consequences of international conflict is frequently the disruption of trade among trading partners or between such partners and the rest of the world. Every country espouses an objective of national self-sufficiency at least to a degree adequate to national survival. Accordingly, all countries take some measures to limit their vulnerability to trade disruption. Among the alternatives to tariffs or subsidies, etc., for controlling the degree of specialization must be counted preferential trading agreements and customs unions on the international front, and stockpiling, emergency planning or stand-by production base capacities on the domestic front. In essence, the preceding model of factor migration as a substitute for trade in goods identifies protection from effects of trade disruption as a primary benefit from factor movement within a Hecksher-Ohlin world.
