CFA Level I · CFA Level I Exam · Introduction to Geopolitics
In the CFA Level I geopolitics framework, which of the following is the most accurate description of a nation-state actor?
A nation-state actor is a sovereign government that controls a defined territory and pursues national interests such as security and prosperity. Multinational companies and cross-border advocacy groups are non-state actors, because they lack sovereign authority over territory.
- AA multinational company that operates in many countries
- BA sovereign government with defined territory that pursues national interestsCorrect
- CA voluntary group that campaigns on social issues across borders
Explanation
Nation-states are sovereign entities with territory and a government, and they pursue national interests such as security and economic prosperity. Multinationals are non-state actors, as are advocacy groups and NGOs, so the other options describe different actors.
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