Final answer:
States founded on trade are often unstable due to trade discrimination, lack of central government control on trade, and difficulty in establishing workable foreign and commercial policies.
Step-by-step explanation:
States founded on trade are often unstable due to several reasons. First, when states have the power to regulate trade independently, they may discriminate against each other, creating unfair trade relations. This can lead to conflicts and instability between states. Second, the lack of a central government with the power to impose tariffs on foreign imports or regulate interstate commerce can result in an influx of low-priced goods from other countries, which negatively impacts local producers and the overall economy. Third, the difficulty in establishing workable foreign and commercial policies under a decentralized system can make it challenging for states to engage in international trade and forge alliances, making them vulnerable to economic imbalances and isolation.