CFA Level I · CFA Level I Exam · Introduction to Geopolitics
In the CFA Level I treatment of geopolitics, which of the following actors is best described as a nation-state?
A nation-state is best described as a political entity with defined territory, a permanent population, and a government that claims sovereignty. Multinational corporations are non-state actors, and trade blocs are groupings of states, so neither one fits the definition of a nation-state.
- AA multinational corporation that operates in many countries
- BA political entity with a defined territory, a permanent population, and a government that claims sovereigntyCorrect
- CA regional trade bloc whose members agree to reduce tariffs
Explanation
A nation-state is a political entity with defined territory, a population, and a government exercising sovereignty. A multinational corporation is a non-state actor. A trade bloc is a supranational grouping of states and is not itself a sovereign state.
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