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EconomicsModule 5 of 8

Introduction to Geopolitics

5

Concepts

0

Formulas

1

Decisions

2

Quiz Questions

Key Concepts

5 concepts covered in this module.

Geopolitical Risk

Risk from political events, conflicts, sanctions, and policy changes that affect investment returns and economic activity.

Globalization Forces

Trade liberalization, capital flows, technology diffusion, labor mobility. Benefits: efficiency, growth. Costs: inequality, dependency.

State Actors

National governments with sovereignty. Non-state actors: international organizations (IMF, WTO, World Bank), NGOs, multinational corporations.

Tools of Geopolitics

Military force, economic sanctions, trade agreements, soft power (culture, diplomacy), cyber capabilities.

Assessing Geopolitical Risk

Identify threats, assess probability and impact, monitor signposts/escalation indicators, consider tail risks.

Decision Frameworks

1 decision frameworks to guide your analysis.

How to incorporate geopolitical risk?

  • Scenario analysis for different geopolitical outcomes
  • Country risk premiums in discount rates
  • Diversification across regions and geopolitical risk profiles

Mind Map

Visual overview of how concepts connect in this module.

Geopolitics
Actors
Nation states
International orgs (IMF, WTO)
Non-state actors
Multinational corps
Tools
Military force
Economic sanctions
Trade agreements
Soft power
Cyber
Globalization
Trade liberalization
Capital flows
Technology diffusion
Benefits vs costs
Risk Assessment
Identify threats
Probability & impact
Signposts & escalation
Tail risk

Study Introduction to Geopolitics

This module has 6 flashcards and 2 quiz questions to test your knowledge.

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Monetary Policy

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International Trade