We will discuss the theory of hegemonic over-reach and use it to tie things together. Look at the twist in the conclusions. Although this chapter is about trade and the production structure, it is useful to think of it as an example of two bigger themes. The first, which is one of Gilpin's favorite, is the tension between domestic needs and international responsibilities. Sometimes it is conventient to compartmentalize domestic politics and international relations, but this chapter shows that the two are connected.
International forces create the environment in which domestic politics is played out.
And, at the same time, the international envioronment is shaped by the sum of the domestic forces. So you cannot really separate the two, but rather you must think of them together. During the best years of the Bretton Woods system, for example, some have argued that there was a virtuous alignment of domestic and international interests in the major nations of the world. A liberal trading system was also in the interests of domeestic firms, so that the two levels were mutually supporting. The breakdown of the Bretton Woods system occured, it is said, as domestic interests deviated from international norms.