CFA Level I · CFA Level I Exam · Introduction to Geopolitics
A country that long supported open trade begins imposing broad tariffs, subsidizing domestic industries, and restricting foreign investment in strategic sectors. This shift is most likely evidence of:
The shift most likely reflects increasing nationalism and deglobalization pressure. Broad tariffs, domestic subsidies and limits on foreign investment protect national interests and reduce economic integration, which is the opposite of the lower barriers and shared rules associated with globalization and multilateral cooperation.
- ARising globalization
- BIncreasing nationalism and deglobalization pressureCorrect
- CDeepening of multilateral cooperation
Explanation
Tariffs, subsidies and investment restrictions place domestic interests ahead of integration, which is typical of nationalism and a move away from globalization. Rising globalization and deeper multilateralism would involve lower barriers and more joint rule-making.
Did you get it right without looking?
One question tells you little. A timed set on Introduction to Geopolitics shows your real accuracy, how long you take and where you lose marks.
More Introduction to Geopolitics questions
- A portfolio manager notes that a regional conflict has increased the probability of a supply disruption in an energy-exporting region. Which…
- In the CFA Level I geopolitics framework, a country that mainly pursues its own interests and prefers to act without binding commitments to …
- An analyst notes that a state has strong hard power but little ability to attract other countries through its culture and values. Which conc…
- During a sudden rise in geopolitical tension, investors most likely shift funds toward:
- A large international non-governmental organization lobbies several governments to adopt stricter environmental disclosure rules but has no …
- An analyst separates geopolitical risks into those that can be anticipated and those that cannot. Which of the following is the best example…