Geopolitics and Country Risk Lecture Notes

This set of flashcards covers key concepts from the lecture notes on geopolitics and country risk, focusing on definitions, theories, case studies, and practical applications in international relations.

What is the International System?

A complex structure composed of sovereign national states.

What are the main characteristics of the International System?

Anarchy, states as primary actors, and security as a core concern.

How are states' capabilities measured?

Primarily in military terms.

What significant changes occurred in international analysis since the 1970s?

Broadened scope to include economic, political, and cultural dimensions.

Who are the new influential actors in the international system?

Corporations, International Organizations, NGOs, Civil Society.

What is interdependence as defined by Keohane & Nye?

Reciprocal effects between countries or actors across borders.

Why is security a core concern in the international system?

Especially after WWI and WWII.

What is Soft Power?

The ability to persuade and influence through culture and values.

What is Hard Power?

The ability to influence through military strength and coercion.

Which companies have revenues larger than many national economies?

Examples include Apple and Royal Dutch Shell.

What is the dynamic relationship between economic wealth and political power?

Governments shape corporate behavior through policies.

What factors affect domestic and international policies?

Transnational interests.

What is the Political Relevance Criterion?

Not all international interactions have equal importance.

What are the key elements of Conflict as an international interaction?

Scarcity of resources or influence and mutual exclusivity of goals.

What is the ultimate expression of conflict?

War.

How is cooperation classified in international relations?

By area of cooperation, level of formalization, and actors involved.

What is the significance of cultural sensitivity for strategic agents?

To understand local contexts, customs, and values.

What does the case study activity on TikTok vs Instagram focus on?

Analyzing interdependence.

What are visible elements of culture compared to invisible ones?

Visible: food, clothing; Invisible: religion, ideology, beliefs.

How does culture affect negotiation strategy?

It influences communication and outcomes of negotiations.

Why is it important to pronounce names correctly in negotiations?

To show respect and improve communication.

What cultural aspect must negotiators observe?

Non-verbal cues, greetings, and hierarchy.

What are norms and values in cultural contexts?

Norms are standards of behavior; values are collective judgments about importance.

What does the phrase 'Think local to act global' imply?

Understanding local customs can inform global actions.

What is speech's role in geopolitical narratives?

Speech reflects and shapes realities, creating identities and influencing actions.

What strategies were used by US leaders after 9/11?

Demonization, inferiorization, and annulment of enemies.

What is the 'Axis of Evil' speech related to?

It frames rogue states as a global threat.

What is the main objective of political risk analysis?

To provide reliable forecasts of political conditions affecting economic outcomes.

What are risk ratings used for?

To evaluate a country's or issuer's ability to meet financial obligations.

What indices can be used for tangible indicators in risk evaluation?

Debt-to-GDP ratio, inflation rate, per capita income.

What is sovereign risk?

The probability that a national government defaults on its debts.

How can a crisis be described in relation to risk?

A crisis is often the accumulation of several unmanaged risks.

What does effective risk management protect against?

It protects value, builds stakeholder confidence, and sustains competitive advantage.

What is the relationship between risk and crisis management?

They are intertwined, where unmanaged risks can lead to crises.

What challenges impact risk management?

Quality of information, resource constraints, planning accuracy, and interpretation.

How can understanding culture assist in geopolitical conflict resolution?

By improving negotiation and risk mitigation through cultural awareness.

What should companies focus on to minimize the impact of risks?

To anticipate issues and make informed decisions.

What strategies can decision-makers utilize under uncertainty?

Flexible and adaptive strategies.

How does context influence negotiation outcomes?

Cultural context affects strategy and communication methods during negotiations.

What does a successful risk analysis involve?

Identifying risks, assessing their impact, and forming mitigation strategies.

What is the core idea behind managing risk?

It involves identifying, assessing, and mitigating threats.

What is the role of risk agencies?

To regulate political and economic risks and provide assessments.

What are the types of risk that companies must monitor?

Country risk, convertibility risk, cambial risk, logistics risk.

What are the benefits of effective risk management?

It helps in deciding strategic direction and minimizing negative impacts.

How can small events escalate into crises?

They can snowball into major failures if not managed early.

What is the significance of understanding intra-cultural diversity in negotiations?

Avoids stereotypes and promotes better communication strategies.