Indeed, it would seem that the ways in which international economic interactions have been organized and regulated, both on the state and international levels, has largely divorced economic sovereignty from the realm of territoriality.

             One must not take this point too far however, as there are many important indirect interactions between economic and territorial sovereignty. For example, international economic flows can be an important source of revenue for the state. For example, tariff collection from imports, foreign exchange from exports, and an increasing domestic tax base from production for foreign markets, to name a few. Some of these revenues can then be geared toward military expenditures to bolster defense. Conversely, uncontrolled military and high technology exports can be a threat to national security. A state that does not regulate its military exports could easily find itself confronted with an enemy fighting with its own equipment. In the end however, the threat of trans-border economic flows to territorial sovereignty seems overstated. Thomson and Krasner note that "interdependence arguments ignore the relationship between the growing level of some transactions, both domestic and international, and the.control of a defined territory by a stable government that exercises final authority" (197). To repeat, there are linkages between economic and territorial sovereignty, but they are indirect, and the fact that money and goods cross borders does not constitute a direct threat to territoriality.

             Another problem with conflating economic and territorial sovereignty is the danger of ignoring the links between economics and other, non-territorial aspects of sovereignty. States have recently taken on the function of satisfying the economic well being of their peoples. As such, economic security and development can be an important source of political authority. Economic policies that are either too closed or too open to the international market can result in economic problems that can undermine the political authority of the state.