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

An analyst observes that two large economies are cooperating on climate policy while competing through export controls on advanced technology. This mix of behavior is best explained by the idea that:

States can cooperate on issues where interests align, such as climate policy, while competing where security or economic advantage is at stake, such as advanced technology. Interdependence neither eliminates competition nor prevents restrictive measures, as the export controls in the scenario demonstrate.

  1. Astates pursue cooperation and competition simultaneously depending on the issueCorrect
  2. Bcooperation always eliminates competition between interdependent states
  3. Ceconomic interdependence prevents states from using restrictive trade measures

Explanation

States can cooperate where interests align, such as climate, and compete where national security or economic advantage is at stake, such as technology. Interdependence does not remove competition or prevent restrictive measures, as the export controls show.

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