The trade-conflict model claims that one state, designated ”actor”, is deterred from initiating conflict against a trading partner, designated ”target”, for fear of losing the welfare gains associated with trade. This paper extends the trade-conflict model to examine the effect of country size that will influence the trade gains among countries. We derive three propositions regarding to international interactions that pertain to the links between trade, conflict and country size. These hypotheses all imply that a country with an improvement in its terms of trade with a large country will decrease conflict more toward the large country than with an improvement in its terms of trade wit ha small country. A 30-country sample from the Conflict and Peace Data Bank (COPDAB) is used for empirical tests. The empirical analyses support the derived hypotheses. The model predicts that a country'sability to influence domestic consumption in a trading partner is an important determinant of international interactions.