Economics-2 Introduction to Geo Politics Reading

Transcript:Economics-2 Introduction to Geo Politics Reading:
Economics-2 Introduction to Geo Politics Reading No – 13 Version 2023 Study Session 3 Learning Outcome Statements The candidate Should be able to: describe geopolitics from cooperation versus competition perspective describe geopolitics and its relationship with globalization describe tools of geopolitics and their impact on regions and economies describe geopolitical risk and its impact on investments All Rights Reserved -Mentor Me Careers www.mentormecareers.com Los a: Geopolitics Geopolitics- the study of geography and its effects on politics and trade. Trade relations Agreements Policies See the table to the right given by the Thomson data stream on how various wars affected returns. All Rights Reserved -Mentor Me Careers www.mentormecareers.com Los a: Geopolitical Risks Russia Ukraine Conflict: Case study Total of $139 Billion assets are stuck in Russia $79 bn in Debt Companies leaving Russia are leaving 47% of GDP Of Russia Hence it’s important that Geopolitical risk be studied as a part of investments All Rights Reserved -Mentor Me Careers www.mentormecareers.com Los a: Relationship Complexities Example All Rights Reserved -Mentor Me Careers www.mentormecareers.com Russia India U.S Ukraine Close Ally Ally Close Ally Attacks Pressure Pressure Oil Imports NPK Fertilizer Defense Deals Diplomacy Against China Disclaimer: The diagram is just a hypothetical depiction of Geo political cooperation complexities, we are in no way expressing any opinion on the current scenario. Readers are advised to use it only for education purposes. Los a: Features of Political Cooperation All Rights Reserved -Mentor Me Careers www.mentormecareers.com Source: New York Times Los a: Motivations for Cooperation National Security or Military Interest South Korea and the U.S India & Russia U.S & Israel Economic Interest Resources Standardization Regulatory Process Operational Cultural All Rights Reserved -Mentor Me Careers www.mentormecareers.com Los b: Non-State Factors: Globalization All Rights Reserved -Mentor Me Careers www.mentormecareers.com Global Trade as % of GDP SOURCE: World Bank Business Dependency Los b: Globalisation All Rights Reserved -Mentor Me Careers www.mentormecareers.com Los b: Threats of Globalisation Gain for company Loss for Country Lower Environmental and Governance Standards Political Consequences Interdependence All Rights Reserved -Mentor Me Careers www.mentormecareers.com Los c & d:categorisation All Rights Reserved -Mentor Me Careers www.mentormecareers.com Non-Cooperation Globalisation Cooperation Nationalism Los c & d: Example Countries All Rights Reserved -Mentor Me Careers www.mentormecareers.com Los c& d: Characteristics All Rights Reserved -Mentor Me Careers www.mentormecareers.com Los d: Tools of Geopolitics All Rights Reserved -Mentor Me Careers www.mentormecareers.com Nationalization of export Foreign investment restrictions Economic Sanctions Export Subsidies