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

Which of the following non-state actors is most likely to influence geopolitical outcomes primarily through control of cross-border capital and production decisions?

A multinational corporation is the non-state actor that most likely influences geopolitics through control of cross-border capital and production decisions. Its investment, supply chain and location choices affect economies and governments, whereas NGOs rely on advocacy and intergovernmental bodies depend on member states.

  1. AA multinational corporationCorrect
  2. BA non-governmental organization focused on human rights
  3. CAn intergovernmental body composed of member states

Explanation

Multinational corporations shape outcomes through investment, location of production and supply chains. NGOs rely on advocacy and public pressure, while intergovernmental bodies are composed of states and work through treaties and agreed rules.

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