▁therefore , ▁the ▁most ▁important ▁power ▁resource . ▁States ▁must ▁rely ▁ultimately ▁on ▁their ▁own ▁resources ▁and ▁must ▁st rive ▁to ▁maintain ▁their ▁power ▁positions ▁in ▁the ▁system , ▁even ▁at ▁high ▁economic ▁costs . ▁For ▁real ism , ▁the ▁most ▁important ▁variables ▁are ▁the ▁economic ▁and ▁military ▁strength ▁of ▁h eg em onic ▁states ; ▁and ▁international ▁host ilities ▁are ▁mainly ▁because ▁of ▁variations ▁in ▁the ▁distribution ▁of ▁political - mil it ary ▁capabilities ▁between ▁states . ▁ ▁H eg em onic ▁stability ▁ ▁The ▁theory ▁of ▁h eg em onic ▁stability ▁by ▁the ▁real ist ▁school ▁arg ues ▁that ▁domin ance ▁of ▁one ▁country ▁is ▁necessary ▁for ▁the ▁existence ▁of ▁an ▁open ▁and ▁stable ▁international ▁economy . ▁The ▁relationship ▁between ▁h eg em ony ▁and ▁an ▁open , ▁stable ▁economy ▁has ▁been ▁challeng ed ▁by ▁some ▁sch ol ars ▁“ As ▁US ▁behaviour ▁during ▁the ▁inter war ▁period ▁illustr ates , ▁the ▁possession ▁of ▁superior ▁resources ▁by ▁a ▁nation ▁does ▁not ▁translate ▁automatically ▁into ▁great ▁influence ▁or ▁benef icial ▁out comes ▁for ▁the ▁world .” ▁ ▁Development ▁policy ▁ ▁Real ist ▁trade ▁encourag es ▁Import ▁substitution ▁industrial ization ▁( IS I ) ▁replacing ▁imports ▁with ▁domestic ▁production . ▁Real ism ▁recogn ises ▁that ▁trade ▁reg ulations ▁can ▁be ▁used ▁to ▁correct ▁domestic ▁dist ort ions ▁and ▁to ▁promote ▁new ▁indust ries . ▁ ▁Under ▁real ism , ▁states ▁possess ▁a ▁high ▁degree ▁of ▁dis cret ion ary ▁power ▁to ▁influence ▁many ▁variables ▁and ▁prices ▁in ▁the ▁economy . ▁The ▁government ▁influ