Which of the following best summarizes why strong domestic institutions increase the durability of cooperative relationships, according to the chapter?
Explanation
Robust institutions help anchor commitments and make agreements less prone to reversal.
Other questions
Which of the following best describes a 'state actor' as used in Learning Module 5?
According to the chapter, which factor most increases a country's incentive to cooperate with neighbors for access to resources?
Which of these is an example of 'soft power' as described in the chapter?
Which statement correctly characterizes globalization in the module's framework?
Which of the following is a commonly cited benefit of globalization in the chapter?
The COVID-19 semiconductor shortage illustration in the chapter primarily exemplifies which geopolitical risk concept?
Which institution is primarily responsible for providing conditional emergency lending and global surveillance to stabilize the international monetary system, according to the chapter?
Which World Bank entity offers low- or no-interest loans to the poorest countries, as described in the chapter?
Which of the four archetypes in the chapter is characterized by countries seeking political self-sufficiency and state control of strategic industries?
Singapore is cited in the chapter as an example of which archetype and why?
Which geopolitical tool category includes tariffs, nationalization, and voluntary export restraints (VERs)?
Economic sanctions targeting a country's oil sector would be classified in the chapter primarily as which type of tool?
Which risk type is best described as a known slow-moving danger that evolves over many years and affects multiple sectors (example: climate change)?
Brexit is given in the chapter as an example of which form of geopolitical risk?
When investors evaluate geopolitical risk, which three dimensions does the chapter recommend they assess?
Which of the following is a recommended investor practice in the chapter to handle complex, non-linear geopolitical developments?
Which of the following investment actions is a typical response to high-velocity geopolitical shocks as discussed in the chapter?
Under which archetype would you place a country that anchors its policy to a leading low-inflation partner to 'import' price stability, as described in the chapter?
Which international body became the primary multilateral framework governing global trade after the General Agreement on Tariffs and Trade (GATT) was superseded in 1995?
Which of the following is a typical objective for a government imposing capital outflow restrictions, per the chapter?
The chapter uses Malaysia's 1998–2001 capital control episode to illustrate which conclusion about capital controls?
Which of the following is an example of a national security tool discussed in the module?
How does the chapter define 'trade creation' when a regional trading bloc forms?
What is 'trade diversion' as described in the chapter?
Which description best captures a 'voluntary export restraint' (VER) in the module?
Which of the following is a central reason countries adopt inflation-targeting frameworks, per the chapter?
Why do many central banks target inflation two years ahead rather than current inflation, according to the chapter?
Which of the following is NOT listed in the chapter as a limitation of monetary policy?
Which country is given as the pioneering example of inflation-targeting in the chapter?
What is the chapter's main reason for why central bank independence matters for inflation targeting?
Which of the following characteristics does the chapter attribute to successful inflation-targeting regimes?
Which country in the chapter is discussed as an example of prolonged deflationary struggle despite policy intervention?
Which of the following best captures the chapter's explanation for why governments sometimes choose exchange-rate targeting over inflation targeting?
In the chapter's taxonomy, what is the primary difference between dollarization and a currency board system?
What asset-management consequence did Malaysia face after imposing capital controls in 1998, per the chapter?
Which of the following best explains why multilateral trading blocs can enhance long-term growth spillovers among members?
Which of these is a financial tool of geopolitics highlighted in the module?
Which type of investor approach does the chapter suggest will most likely treat geopolitical risk as a central part of decision-making?
Which of these is a recommended signpost to watch for escalating geopolitical risk, according to the chapter?
Which of the following best describes 'autarky' as an archetype in the chapter?
Which of the following is an investor action the chapter recommends for medium-term geopolitical risks affecting specific sectors?
Which of these is a reason the chapter gives for why some countries may not adopt formal inflation targeting?
How does the chapter suggest investors treat political 'politics' versus 'policy' as signposts?
Which of the following best describes the recommended role of scenario analysis in portfolio management, per the chapter?
Which of these is an example of a thematic geopolitical risk used in the chapter's examples?
Which of the following best describes 'bilateralism' in the chapter?
Which of these is a recommended corporate/tactical response to geopolitical supply-chain risk in the chapter?
Which of the following best captures why investors might require a higher discount rate for assets in countries with persistent geopolitical risk, per the chapter?
Which of the following best describes the chapter's recommended priority for incorporating geopolitical analysis into portfolios?