F50 - International Relations, National Security, and International Political Economy: GeneralReturn

The text deals with the position of small countries, defined as countries with populations under 16 million, in today's globalized world. Their advantages and disadvantages, but especially the opportunities that globalization offers these countries, are discussed. Small countries can overcome their smallness by market acquisition, acquisition of missing production factors, regionalism and advantages of membership in international organisations and taking advantage of the existence of international financial markets. Governments also play an important role. The article is illustrated with A. T. Kearney Globalization Index for the economic, personnel, technological and political dimensions of globalization processes.

The foreign policy of a sovereign state is a complicated decision-making process. Both security and economic interests of the state as well as its long-term values (more likely values of a moral nature) must be taken into account here. The paper deals with the relation between economic and trade policy (representing interests) on the one hand and human rights protection and promotion (representing principles) on the other. Basic conflicts between economic interests and other principles that have to be considered in decision-making are analysed. Furthermore, their role in foreign policy formation is examined. Finally, the paper draws attention to methodical problems of the analysis of the relation between interests and principles.