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CFA Level I Exam · Introduction to Geopolitics

Actors and Their Objectives in Geopolitics: States, Non-State and Supranational

Updated 7 October 2026 · Fact-checked

Geopolitical actors are the parties whose decisions shape international relations. They fall into three groups: nation-states, non-state actors (such as multinational firms, NGOs, armed groups) and supranational bodies (such as the UN or IMF). To answer a question, identify who acts, what power they hold, and what objective drives them.

Understand Actors and Their Objectives in Geopolitics

Geopolitics studies how geography, power and politics shape the way countries and other parties behave. An actor is any party whose choices can change outcomes across borders. Investors care because actor behaviour moves trade, capital flows, prices and risk.

The first group is nation-states. They hold sovereignty over a territory and population. They can make laws, tax, run armies, sign treaties and control borders. Because of this legal authority, they are usually the most powerful actors. Examples are the United States, China, Germany and Brazil.

The second group is non-state actors. They operate across or within borders but do not hold sovereign authority. They include multinational corporations, non-governmental organisations (NGOs), media groups, religious bodies, and armed or terrorist groups. Their power comes from money, information, networks, ideas or force. A large multinational can influence a government through investment decisions. An armed group can disrupt shipping or energy supply.

The third group is supranational bodies. These are organisations created by several states that act above or between them. Examples are the United Nations, the International Monetary Fund, the World Bank, the World Trade Organization and the European Union. Their power is delegated by member states. It differs by body: some set binding rules, others only lend money or offer a forum.

Actors pursue objectives. For states, common objectives are national security, economic prosperity, political stability and influence over others. Non-state actors pursue profit, ideology, humanitarian goals or political change. Supranational bodies pursue the mandate their members gave them, such as financial stability, open trade or peace. Objectives often conflict, and that conflict creates geopolitical risk.

Key formulas to remember

Actor types
Actors = nation-states + non-state actors + supranational bodies
Classify by source of power: sovereignty, private or group resources, or authority delegated by member states.
Common state objectives
Security, economic prosperity, political stability, influence
A state action usually serves one or more of these. Use them to explain why the state acted.
Classification test
Sovereign over territory? Yes = nation-state. Created by several states? Yes = supranational. Otherwise = non-state
Apply the tests in this order to avoid mislabelling.

How to solve Actors and Their Objectives in Geopolitics questions

Use this method for any question that asks you to classify an actor or link it to an objective.

  1. 1Read the stem and underline the party that is acting.
  2. 2Ask whether it holds sovereignty over a territory and population. If yes, it is a nation-state.
  3. 3If not, ask whether several states created it and gave it a mandate. If yes, it is supranational.
  4. 4If neither applies, it is a non-state actor. Note its type: firm, NGO, armed group or other.
  5. 5Identify the action in the stem (sanction, investment, lending, attack, lobbying) and match it to an objective: security, economic, stability, influence, profit or ideology.
  6. 6Check the source of power the actor is using: legal authority, money, force, information or delegated mandate.
  7. 7Compare the three options. Remove any that mislabel the actor type or give an objective that does not fit the action.
  8. 8Pick the remaining option.

Quickest way: Three-question shortcut

When to use it: Use when you have about 90 seconds and the options differ mainly by actor label or objective.

  1. Who has sovereignty? That actor is the nation-state.
  2. Who was set up by states? That actor is supranational.
  3. Everyone else is non-state.
  4. Match the action to the objective in one phrase, such as security or profit.
  5. Eliminate the two options that break either rule. Guess among any remaining if unsure, since wrong answers carry no penalty.

Common mistakes in Actors and Their Objectives in Geopolitics

  • Calling a supranational body a non-state actor without qualification.

    Both are not states themselves, so they look alike.

    Fix: Ask who created the body. If states formed it and delegated a mandate, treat it as supranational.

  • Assuming nation-states are always the most powerful actor.

    Sovereignty sounds like total power.

    Fix: Remember that large firms or armed groups can have real influence. Power depends on the situation, not only on legal status.

  • Treating all actors as pursuing the same objective.

    Students memorise one list of goals.

    Fix: Match the objective to the actor: states seek security and prosperity, firms seek profit, NGOs seek their cause, supranational bodies follow their mandate.

  • Treating a state-owned company as a nation-state.

    The government owns it, so it seems the same.

    Fix: The company is a corporate entity. It may carry out state objectives, but the state itself is the sovereign actor. Read the stem for who is acting.

  • Assuming supranational bodies can force any state to act.

    The word 'above' suggests control.

    Fix: Their authority is delegated and varies. Some set binding rules among members, others only advise or lend.

Worked examples

Example 1

A large multinational technology company announces it will move its main manufacturing base from Country X to Country Y after Country X imposes new export controls. Which description of the actor is most appropriate? A. A nation-state pursuing national security. B. A non-state actor pursuing economic objectives. C. A supranational body pursuing financial stability.

Show the solution
  1. The acting party is a company. It does not hold sovereignty over territory, so A is out.
  2. It was not created by several states with a delegated mandate, so C is out.
  3. It is a non-state actor. Its action, relocating production, protects its costs and access to markets.
  4. This is an economic or profit objective, which fits B.

Answer: B

Example 2

The International Monetary Fund extends an emergency loan to a member country in a currency crisis, on condition of policy reforms. Which classification and objective fit best? A. Non-state actor seeking profit. B. Nation-state seeking influence over a neighbour. C. Supranational body promoting financial stability among its members.

Show the solution
  1. The IMF was created by many states, which gave it a lending mandate. That makes it supranational, so A is out.
  2. It is not a sovereign state with its own territory and population, so B is out.
  3. Emergency lending with conditions aims to stabilise the member's finances and the wider system.
  4. That matches financial stability as its mandate, which is C.

Answer: C

Exam tips

  • Questions are mostly classification: decide the actor type first, then the objective.
  • Use the sovereignty and delegated-mandate tests to eliminate two options quickly.
  • Watch for options that mix a correct actor with a wrong objective, or the reverse.
  • Expect examples such as multinationals, NGOs, the UN, IMF, WTO and the EU. Learn where each sits.
  • Link actions to investor impact: sanctions, trade rules and lending can move markets, so read for the risk angle.

Practice questions from Introduction to Geopolitics

Actors and Their Objectives in Geopolitics: frequently asked questions

What is the difference between state and non-state actors in geopolitics?

A state has sovereignty over a territory and population and can make laws, tax and use force. A non-state actor has no sovereign authority. It gains influence through money, ideas, networks or force.

Are supranational organisations non-state actors?

They are not states, but they are treated as a separate group. States create them and delegate a mandate. The UN, IMF, World Bank, WTO and EU are examples.

What objectives drive nation-states?

Typical objectives are national security, economic prosperity, political stability and influence over others. A single action, such as a trade deal or sanction, may serve more than one of these.

Is a multinational corporation a geopolitical actor?

Yes, as a non-state actor. Its investment, supply chain and lobbying choices can affect governments and trade flows. Its main objective is usually profit and long-term growth.