GEOPOLITICAL & GEO-ECONOMICS Case Solution
GEO-POLITICAL AND GEO-ECONOMICs
GeO-Politics
Geopolitics represents the relationship between interests and power, geographical space, and strategic decision-making. A Swede political scientist, Rudolph Kjellen, coined this term in the 19th century. Geopolitics is mainly emphasizes on international affairs of countries which are affected by Social Darwinism. Moreover, it is also focuses on the limited belief of international laws and global norms, which shows a cynically realistic view on global affairs. On the other hand, this program also signifies the relationship of geographic space, strategic dominance, and natural resources. On the one hand, as well as most of the state and non-state actors identify the individual and collective interests of others, which would help them in maintaining their significant position in the market. (Daniel H. Deudney , 2003)
GeoPolitical Economics
Geopolitical economics is merely emphasis on the macroeconomic analysis of the geopolitical factors and forces. Basically, geopolitical economics focuses on factors that are interlinked with resources and geography of nation-states, labor force, mountain, minerals, rivers, religion, gas, oil, and the prevalent political system(s). These factor show dramatic changes in the economy. Moreover, Microeconomics not only focuses on the monetary and financial phenomenon as it performed in the Cold-War era. However, it will otherwise continue to produce unsatisfactory incorrect monetary viewpoints. As compared to current geopolitical economics, the past model of global economics has faced many geopolitical influences, which affected the market position of the organization in the highly competitive market. The main influences that the economist and investment manager faced is how the geopolitical risk influences the currencies, trade of the economy. On the other hand, they also need to evaluate that which sectors is being affected by these risks. However, investors do not have connection to the entire crisis that happened all over the world. They only consider to hold those realities of the world in which political and geopolitical factors are impacting the financial market of the economy as well as influence the policy decisions of the economy. After analyzing the research on geopolitical factors, it is evaluated that in the past two decades the external factors and forces have dramatically affected the bond and derivatives market. Moreover, some of the financial markets move performed by the geopolitical and policy makers, which reduce the impact of financial variables on financial market and economy.
In Geopolitics, the investors investigate the effects of geopolitics on global politics and foreign dealings. It is a method of international policies implemented by managers, in order to predict, explain, and understand the behavior of international politics through geographical variables. Moreover, the main ingredients of geographical variables include natural resources, technologies, physical variables, topography, demography, size, and climate that help the investors in understanding the international behaviors of the economy. The term of geopolitics has applied to the companies in order to understand the impact of geography on politics. However, these factors are used by the companies from the past few century which also helps the companies in understanding the wider connotations of the economy. In short, geopolitical economics evaluated the impact of geography on both human and physical aspects.
Evolution of geopolitics
The term of “Geopolitics” was first coined by Rudolph Kjellen in 1899. He was a Swedish political scientist who introduce this strategy for understanding internal affairs of the economy through geography. However, it only came into extensive practices in 1930. Moreover, German author, Friedrich Ratzel also defined this strategy as ‘states is like a human being and wants to be constructed’. In reply to the German strategy, one of the researcher stated that the ”state is like a human being which matures for which it essentials to be fortified”................
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