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Why Businesses Oppose War

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Business pressure is believed to be a key mechanism linking economic interdependence to interstate peace, and yet historically not all businesses have opposed war. Why? Existing explanations for business opposition to war mainly try to explain business preferences about conflict through the lens of international trade. Since war ruptures trade, the argument goes, businesses that support free trade will oppose war while those who oppose free trade will not oppose war. Unfortunately, this argument cannot explain many important cases of business war preferences. These puzzles can be easily resolved through a simple—yet powerful—addition to existing theories of business opposition to war. In this dissertation I argue that a business’s opposition to war is jointly determined by two factors, their trade orientation and conflict relevance, rather than simply reflecting their trade policy preferences. I test this theory using a mixed methods approach consisting of comparative case studies of the American wheat and cotton industries during World War I and quantitative survey evidence from American business leaders during World War I and the Vietnam War. I find that my additive theory of business opposition to war better predicts and explains business war preferences in these conflicts than existing theories. My theory and empirical findings are not only relevant for future research on business war preferences and businesses' role in foreign security policy, but also for contemporary business and political leaders.

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