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CFA Level I · CFA Level I Exam · Introduction to Geopolitics

An analyst compares two geopolitical tools: a tariff on imported goods and a cyberattack on a rival's power grid. Which statement is most accurate?

The tariff is an economic tool and the cyberattack is a national security tool. Tariffs change the cost of traded goods, while cyberattacks use offensive digital capabilities against infrastructure. Neither is a financial tool, which would involve capital access or payment systems.

  1. ABoth are economic tools
  2. BThe tariff is an economic tool and the cyberattack is a national security toolCorrect
  3. CThe tariff is a financial tool and the cyberattack is an economic tool

Explanation

Tariffs alter trade in goods and are economic tools. Cyberattacks are an offensive capability aimed at infrastructure and belong with national security tools. The other options misclassify one or both.

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