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

Compared with a bilateral agreement, a multilateral arrangement among many countries is most likely to:

A multilateral arrangement most likely involves three or more parties coordinating on shared rules. Bilateral agreements involve only two parties, and multilateral arrangements do not eliminate the sovereignty of members, who generally keep their independent authority while agreeing to common rules.

  1. Ainvolve only two parties
  2. Binvolve three or more parties coordinating on shared rulesCorrect
  3. Celiminate the sovereignty of all members

Explanation

Multilateralism involves three or more countries coordinating around common rules or goals, while bilateral involves two. Members generally retain sovereignty.

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