CFA Level I · CFA Level I Exam · Introduction to Geopolitics
A government bans exports of advanced semiconductor equipment to a rival country in order to slow the rival's military modernization. This action is best described as:
The action is an economic tool, specifically an export control. Export controls restrict trade in goods and technology to target countries. Although the goal relates to security, the instrument itself works through trade, not through capital restrictions or cyber operations.
- Aan economic tool, specifically an export controlCorrect
- Ba financial tool, specifically capital restrictions
- Ca national security tool, specifically cyber warfare
Explanation
Export controls restrict the sale of goods or technology to specific countries and are classed as economic tools. They involve trade in goods, not capital flows or cyber activity. The military aim does not change the tool category.
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