Book 1_Econ_INTRODUCTION TO GEOPOLITICS Flashcards
Geopolitics
- refers to interactions among nations
- range from diplomacy and military force to economic or cultural openness
Globalization
refers to the long-term trend toward worldwide integration of economic activity and cultures.
nationalism
refers to a nation pursuing its own economic interests independently of, or in competition with, the economic interests of other countries.
Autarky
- noncooperation and nationalism
- producing most or all necessary goods and services domestically
- state-dominated society
Hegemony
- noncooperation and globalization
- have the size and scale to influence other countries without
necessarily cooperating.
Bilateralism
- cooperation and nationalism
- cooperation between two countries
- not to involve itself in multicountry arrangements
Multilateralism
- cooperation and globalization
- engage extensively in international trade and other forms of cooperation with many other countries
International Monetary Fund (IMF)
Promoting international monetary cooperation
Facilitating the expansion and balanced growth of international trade
Promoting exchange stability
Assisting in the establishment of a multilateral system of payments
Making resources available (with adequate safeguards) to members experiencing
balance of payments difficulties
World Bank
a vital source of financial and technical assistance to developing countries
around the world
World Trade Organization (WTO)
the only international organization dealing with the global rules of trade between nations
Geopolitical risk
Event risk; when the timing is known
Exogenous risk; unanticipated events
Thematic risk: known factors that have long-term effects
The effect on investments of a geopolitical risk
likelihood of a geopolitical risk
the impact on investment values of an event if it occurs
the velocity with which it would affect investment values
tools of geopolitics
National security tools
Economic tools
Financial tools
