Geopolitics Revision Guide PDF

**Geopolitics Revision Guide** **1. Three Components of Economic Powers (Session 1, Slide 24)** Economic power can be divided into three main components: 1. **Production Capacity:** - Refers to the ability of a country to produce goods and services. - Measured by GDP, indus...

**Geopolitics Revision Guide** **1. Three Components of Economic Powers (Session 1, Slide 24)** Economic power can be divided into three main components: 1. **Production Capacity:** - Refers to the ability of a country to produce goods and services. - Measured by GDP, industrial output, and technological advancement. 2. **Financial Power:** - Includes control over currency, banking systems, and capital markets. - A country's ability to influence global trade through financial systems (e.g., US dollar dominance). 3. **Trade Power:** - The ability to control and influence global trade routes and agreements. - Includes export capabilities, trade agreements, and membership in trade organizations. **2. Geoeconomic Instruments (Session 2, Slides 25-30)** 1. **Trade Policy:** - Tariffs, quotas, and export controls. - Trade agreements and partnerships (e.g., WTO rules). 2. **Investment Policy:** - Investment restrictions, foreign direct investment (FDI) policies. - Screening of foreign investments for national security reasons. 3. **Economic Sanctions:** - Targeted restrictions on countries, companies, or individuals. - Includes asset freezes, trade embargoes, and travel bans. 4. **Economic/Military Assistance:** - Financial aid, loans, or grants provided to allies. - Military aid includes arms sales and defense cooperation agreements. 5. **Financial and Monetary Policy:** - Currency manipulation, monetary aid, and setting interest rates. - Use of international institutions like the IMF or World Bank. **3. Techno-Nationalism (Session 3, Slides 24-25 & 28)** - **Definition:** - National strategy focusing on achieving technological independence and supremacy. - Balances economic development with national security. - **Key Elements:** - **R&D Investment:** Government-backed research programs. - **Industrial Policy:** Subsidies for tech sectors. - **Supply Chain Control:** Reducing reliance on foreign tech providers. - **Examples:** - US export controls on advanced tech. - China's Made in China 2025 initiative. **4. Friend-Shoring (Session 4, Slides 22-23)** - **Definition:** - Relocating supply chains to countries with shared values or trusted relationships. - **Goals:** - Reduce dependence on geopolitical rivals. - Strengthen economic ties with allies. - **Examples:** - US moving semiconductor production to friendly countries like Taiwan. - EU reducing reliance on China for critical goods. **5. Washington Consensus vs. Beijing Consensus (Session 8, Slides 8-15)** **Aspect** **Washington Consensus** **Beijing Consensus** ---------------------- ----------------------------- --------------------------- **Economic Model** Free-market, neoliberal State-led development **Key Principles** Privatization, deregulation State control, innovation **Global Influence** US-backed, IMF, World Bank China-backed, Belt & Road - **Washington Consensus:** - Focused on free trade, open markets, and reduced government intervention. - Promoted by the US, IMF, and World Bank. - **Beijing Consensus:** - Advocates state-led economic planning and selective openness. - Focus on long-term growth through tech innovation and infrastructure projects. **6. European Strategic Autonomy (Session 10, Slides 9-15)** - **Definition:** - EU\'s ability to act independently in defense, technology, and trade without relying on global powers. - **Key Areas:** - **Defense & Security:** Reducing dependence on NATO and US security guarantees. - **Technology & Industry:** Investing in strategic sectors like AI, semiconductors, and green tech. - **Trade & Economy:** Diversifying trade partnerships to reduce reliance on the US and China. - **Challenges:** - Fragmented EU policies due to member state disagreements. - Balancing relations with the US while competing with China. **7. Roles of Government Toward Business: Subsidizer, Regulator, Rule-Setter (Session 14, Slide 7)** 1. **Subsidizer:** - Provides financial aid to industries considered essential for national development. - Example: South Korea supporting tech and automotive industries. 2. **Regulator:** - Enacts policies to ensure fair competition and prevent monopolies. - Example: EU antitrust actions against tech giants. 3. **Rule-Setter:** - Establishes rules for businesses, including labor laws, environmental standards, and market regulations. - Example: US regulations on data privacy and security. This guide summarizes the key concepts from the course materials and relevant sessions. Let me know if you'd like additional sections or more detailed explanations on specific points.