Why do states sometimes discriminate in favor of certain states and at other times choose to pursue nondiscriminatory policies? In answering these questions, Lars S. Skalnes stresses the international political importance of foreign economic policy, arguing that trade, foreign investment, and foreign aid policies are strategic instruments great powers use to manage political and military relations with allies and adversaries. Skalnes explains changes in foreign economic policy in terms of shifting strategic assessments regarding the importance of military support from allies. When states need military support from their allies to meet threats to their security, they will adopt discriminatory foreign economic policies in an attempt to strengthen alliance relations. When states can go it alone without military support, by contrast, they will not pursue foreign economic policies that discriminate in favor of either allies or other countries. Discriminatory...

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