CFA Level I · CFA Level I Exam · Introduction to Geopolitics
Country X has limited domestic oil reserves and signs a long-term energy supply agreement with a distant producer, while also building a navy to protect its shipping routes. Which of the following best describes the objectives behind these actions?
The actions best reflect securing access to resources and trade routes that support economic and security needs. A long-term supply deal and a navy protecting shipping lanes both safeguard energy imports. They do not indicate a pursuit of dominance for its own sake or a move toward self-sufficiency.
- ASeeking regional military dominance for its own sake
- BSecuring access to resources and trade routes that support its economic and security needsCorrect
- CReducing its dependence on international trade in favor of full self-sufficiency
Explanation
A supply agreement and naval protection of shipping lanes both aim to secure resources and trade routes, combining economic and security goals. Building a navy to protect shipping is not the same as seeking dominance for its own sake. The supply agreement increases rather than reduces trade reliance, so self-sufficiency is wrong.
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