Essay heading: Critically examine the proposition that small allies have ?exploited' large allies in the North Atlantic Treaty Organisation. Comment on the proposition that prospective gains for producer groups prove more important than assessment of gains to ...
Sandler and Hartley point out a clear example of this exploitation, as in 1970 the USA contributed 75% on NATO's defence spending with the next closest allies which included the UK, France and Germany only contributing 6%. The exploitation becomes evident when you discover that the USA only received 35% of NATO's defence benefits... displayed 300 characters
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Olson and Zeckhauser felt that the NATO members would never be able to gain allocative efficiency under the system they were using for defence contributions.
Olson and Zeckhauser developed a test for the exploitation hypothesis this was done by dividing military expenditure by GDP and then adjusting by the ability to pay... displayed next 300 characters
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