Introduction to Geopolitics

Question 1

Which of the following statements regarding a country’s political cooperation is most accurate?
A. If a country is engaged in military conflict, there is a higher cost to cooperation.
B. A country with few internal resources is not likely to rely on political cooperation.
C. Interest prioritization does not determine the depth and nature of political cooperation.

Answer 1

A. If a country is engaged in military conflict, there is a higher cost to cooperation.

Question 2

A consequence of one of the disadvantages of globalization is that:
A. pay differences between countries have narrowed.
B. emerging market trade flows have grown more important.
C. greater economic and financial cooperation has increased interdependence.

Answer 2

C. greater economic and financial cooperation has increased interdependence.

Question 3

Which of the following outcomes is most likely a result of globalization?
A. Unequal gains
B. Increased independence
C. Decreased access to talent

Answer 3

A. Unequal gains

Question 4

A US company expanding critical spare part inventories for local customers made at its existing Canadian facility after a supply chain disruption is most likely using the coping tactic of:
A. reshoring the essentials.
B. reglobalizing production.
C. doubling down on key markets.

Answer 4

A. reshoring the essentials.

Question 5

An example of a geopolitical multifaceted tool for furthering national interests is:
A. cabotage.
B. armed conflict.
C. nationalization of key export industries.

Answer 5

A. cabotage.

Question 6

Which of these is most likely to be described as an event risk?
A. An earthquake
B. An election
C. An ongoing civil war

Answer 6

B. An election

Question 7

Exogenous risks are best described as those that:
A. are known and evolve and expand over a period of time.
B. revolve around set dates, such as elections, new legislation, or other date-driven milestones, such as holidays or political anniversaries.
C. are sudden or unanticipated and impact either a country’s cooperative stance, the ability of non-state actors to globalize, or both.

Answer 7

C. are sudden or unanticipated and impact either a country’s cooperative stance, the ability of non-state actors to globalize, or both.

Question 8

Which of the following statements about geopolitical threats in the investment environment is most accurate?
A. Geopolitical risk is not always present in the investment environment.
B. Highly collaborative, interconnected countries are vulnerable to geopolitical risk.
C. Geopolitical risk tends to have less of an impact on markets already experiencing a general contraction or economic downturn.

Answer 8

B. Highly collaborative, interconnected countries are vulnerable to geopolitical risk.

Question 9

An applicable conclusion drawn from the Geopolitical Risk Index (GPR) is that:
A. high geopolitical risk results in tangible macroeconomic effects.
B. recurring geopolitical risk events lead to reduced corporate investment.
C. the adverse impact of actual events is greater over time than that of the threat of such events.

Answer 9

A. high geopolitical risk results in tangible macroeconomic effects.

Question 10

The basic geopolitical risk type most likely in comparison to have the smallest degree of uncertainty is:
A. exogenous risk.
B. event risk
C. thematic risk.

Answer 10

B. event risk