Key geopolitics topics for

MBA interviews
Prepzone Session taken by Yash Pratap Singh (IIM Bangalore , IIT Gandhinagar Director Gold
Medallist)
What is geopolitics as most student misunderstand
it?
● Geopolitics, as it pertains to MBA students, can be defined as the study of how geography,
economics, and demography influence politics, international relations, and business decisions. It
involves the analysis of political, geographical, and economic factors or influences between at least
two nations or groups
● Geopolitics deals with the relations between nations and the forces that determine the friendly or
hostile relations between them
● Geopolitics is not solely equated to international relations
● As MBA aspirants you might encounter such questions in interviews and as MBA graduates often
you will find yourself in different places in the world doing business, understanding geopolitics can
help them navigate complex situations and make informed decisions (at least 4 or 5 amazing
electives at IIMB such as Doing Business in Risky Countries, and others)
Be careful when you state your interest in
geopolitics? Is it really geopolitics?
● Geopolitics is not merely international affairs
● Geopolitics is far more complex than that
● Hence, might clarify that you like to explore geopolitics as you love reading international news and
events, and international affairs
Top FIs and even consulting firms now have
geopolitics study units
Key geopolitics topics for 2024

● Russia - Ukraine (and larger Russia - NATO tensions)

● US and China Trade Issues
● Rise of China and its impact on Asia (India - Maldives, a case in point)
● Evolving structures in the Middle East (Israel - Palestine, Role of Saudi Arabia, Iran and its friction
with Israel, Saudi Arabia and the US)
● India - Middle East - Europe Economic Corridor (against backdrop on One Belt One Road initiative)
● Africa's - the always emerging paradigm
● Latin America (Brazil, Argentina elections)
What aspects of these issues should MBA aspirants
know?
● Impact of these issues on global economy (inflation, trade)
● Impact of these issues on business operations globally (supply chain, risks of operations)
● Impact of these issues on World peace (wars etc.)
 Russia Ukraine (largely Russia - NATO)
● The conflict between Russia and Ukraine began with Russia's annexation of Crimea in 2014
● This conflict escalated dramatically in February 2022 when Russia launched a full-scale invasion of
Ukraine
● Ukraine, a former Soviet republic, has deep cultural, economic, and political bonds with Russia
○ Ukraine and Russia share a common heritage that goes back over a thousand years to the time when Kyiv, now
Ukraine's capital, was at the center of the first Slavic state
○ 1918 — Ukraine declares independence from Russia during a conflict fought by multiple countries and armies
over several years
○ Soviet forces later overthrow independent Ukraine. The Ukrainian Soviet Socialist Republic is founded in
1921, and Ukraine is subsumed into the Soviet Union the following year
○ In 1932 and 1933, a famine caused by Stalin’s policy of collectivization kills millions of people, mainly ethnic
Ukrainians in a republic that is known as the breadbasket of the Soviet Union
● As of January 2024, the conflict between Russia and Ukraine remains ongoing. Since Russia's
full-scale invasion of Ukraine in February 2022, Ukraine has recaptured 54 percent of the occupied
territory, while Russia still occupies 18 percent of the country
● Internationally, the conflict has led to Russia's increased isolation
Russia Ukraine: Impact on the Global Economy

● Disruptions in trade and Supply Chains

○ Prior to the conflict, they accounted for a quarter of global wheat exports, and Russia is a major supplier of
fossil fuels
○ The war has disrupted these supply chains, leading to volatile and elevated commodity and energy prices
○ The price of gas, one of Russia's most important exports, has more than doubled
● Heightened Uncertainty of the recovery of the Global Economy dented through COVID pandemic
○ The conflict has added to the uncertainty in the global economy, leading to slower economic recovery from
the pandemic
○ Reduced business confidence and higher investor uncertainty are weighing on asset prices, tightening
financial conditions, and potentially spurring capital outflows from emerging markets (such as India)
● Impact on specific economies such as in Europe has been more pronounced than others because of
their dependence on Russian energy
Future Outlook of Russia Ukraine (Russia NATO)

● The conflict is expected to be protracted, with varying degrees of intensity for years to come
● The level of support and military hardware Ukraine receives, particularly from its largest military
supporter, the United States, could be crucial for the continuation of its war efforts (things could
change if Trump gets back to the White House defeating Biden?)
● The West's unity in supporting Ukraine, which was strong in 2022 and 2023, is showing signs of
strain, and 2024 could be more difficult for maintaining this consensus
● A negotiated settlement is considered a possible outcome, but currently, both sides seem far from
agreeing to such a resolution
● In summary, the war is expected to continue with no clear end in sight, and its trajectory will be
influenced by international support, military capabilities, and political decisions
US - China Issues

● It is like many other bi-lateral relationships has been a complex one dating for more than 200 years
● US - China for example were allies against Japan in the WWII
● However, with Communist Party gaining foothold in China establishing the People’s Republic of
China in 1949 strained the relationship (McCarthyism Era, US distaste for communism and
proclivity to democracy)
○ The US encouraged its allies to refrain from entering into diplomatic relations with China, cut off trade, and
orchestrated an international embargo of China
● However, things started changing post 1970s (Henry Kissinger and Nixon era)
● It improved further later with the trade between the two countries increasing dramatically from
1980 to 2004, rising from $5 billion to $231 billion
● However, for the last ten years or so with larger trade deficit, human rights issues and Taiwan
issues, the relationship has started straining
US - China Issues: Status Quo

● Trade is the biggest point of contention between the two countries

○ The U.S. has expressed concerns about the trade deficit with China, intellectual property theft, and unfair trade
practices
○ The U.S. has imposed tariffs on Chinese goods, leading to a trade war that has negatively affected consumers and
producers in both countries
○ The U.S. and other countries have also tightened exports of advanced technology to China, citing security reasons
● China's military development and its activities in the South China Sea and Taiwan Strait have raised
concerns in the U.S
● The human rights situation in Xinjiang and Hong Kong has been a point of contention
○ The U.S. and its allies have criticized China's treatment of Uighurs in Xinjiang and its handling of the pro-democracy
movement in Hong Kong
● China is concerned about the American hegemony and wants to break free of that and develop a new
nucleus of power (can it be possible? English is a concern? American Universities?)
US - China Issues: Future Outlook

● Continued turbulence: No easy solution in sight

○ Issues such as Spy Balloon, Semiconductor disputes and military rivalry are not going to be solved easily
● Competition need to be managed without spiralling into a conflict
● Flashpoints need to be controlled such as Taiwan annexation adventures, South China Sea
(Presidential Elections in 2024 with Trump back in power could complicate the relationship)
● Managing domestic issues
○ Xi Jinping is grappling with a slowing economy, while Joe Biden is focusing on his re-election campaign
● Focus on incremental progress than immediate solutions or band aid solutions
Bharat and China: The elephant is upping the ante
against the Dragon
● Both are age - old civilisation, with Bharat running back to thousands of years and so does China
○ By estimates both countries have had ties for about 2000 years with spiritual travellers coming to India (Buddhism)
● Modern relations as they stand started in 1950 when India developed diplomatic relationships with China
(amidst a global furore over communism in China)
● The relations strained strongly during the Sino-India 1962 war
● China is India’s large trading partner (perhaps only after the US) and they also compete for raw materials,
technologies, capital and global market access
● India and China also compete for their standing in the Global South (Africa, Southeast Asia and Latin
America)
○ Including maritime conflict within the Indian Ocean
● Recent border skirmishes with Bhutan Doklam to deadly Galwan incident has strained the status quo
heavily
India and Maldives (The China angle)

● The newly elected Maldivian President Mohamed Muizzu, who campaigned on an “India Out”
platform, has been seen as more inclined towards China
○ Docking of a Chinese ship in the Maldives
○ Signing of several new agreements between China and the Maldives
○ Indian Military being asked to leave
● Operation Cactus
○ The bedrock of the military cooperation between India and the Maldives was established in 1988 when India
intervened to thwart an attempted coup in the Maldives, rescuing the then-president
○ Since then, Indian military personnel, including reconnaissance aircraft, military helicopters, and personnel,
have been stationed in the Maldives for several years, primarily for training purposes
Israel and Palestine
● A conflict with deep historical roots
○ Israeli-Palestinian conflict dates back to the late 19th century, with the rise of nationalist movements among Jews and
Arabs in the region known as Palestine
○ The Balfour Declaration of 1917, issued by the British government, expressed support for the establishment of a
"national home for the Jewish people" in Palestine, then part of the Ottoman Empire
○ Following World War I, Britain took control of the area under the Mandate for Palestine, and the region saw increased
Jewish immigration and land purchases, which led to tensions with the Arab population
● UN intervened with a partition plan post the British mandate
○ In 1947, the United Nations adopted Resolution 181, known as the Partition Plan, which sought to divide the British
Mandate of Palestine into separate Jewish and Arab states, with Jerusalem under international control
● Since then multiple wars have been fought for the land
○ On May 14, 1948, the State of Israel was declared, leading to the first Arab-Israeli War. The war ended in 1949 with
Israel's victory
○ The 1967 Six-Day War was a pivotal event, during which Israel captured the West Bank, East Jerusalem, Gaza Strip, and
other territories
○ The 1973 Yom Kippur War and other military confrontations have continued to shape the geopolitical landscape of the
region
Israel and Palestine: Status Quo
● Numerous peace attempts have been attempted to improve the relationship with Oslo Accord of 1993 being
a predominant attempt
● However, an unprovoked attack by Hamas on Southern Israel last year led to a full scale war which is
continuing till date
● Conflict has also strained relations of Israel with several countries including Qatar
● Humanitarian concerns continue to mount as the war continues with Israel launching more attacks on Gaza
● The complex situations seems to be manifesting in a many different ways such as the Houthi rebels bombing
in the Red Sea especially targeting commercial vessels
○ The Houthis, a Zaydi Shiite movement, have been fighting Yemen’s Sunni-majority government since 2004. They took
over the Yemeni capital Sanaa in September 2014 and seized control over much of the country
○ The Houthis are widely accused of receiving arms, training, and financial support from Iran
○ The attacks have disrupted shipping lanes, leading to an exodus of shipping companies from the region, scuttling supply
chains and increasing consumer prices just as global inflation is on the rise
○ Insurance premiums for ships using the Red Sea have shot up nearly tenfold since the attacks began, and some shipping
companies are passing down these expenses to consumers
○ The US and UK have carried out a number of strikes on Houthi bases in Yemen in response to the group's attacks in the
Red Sea
India Middle East Europe Economic Corridor
● The India-Middle East-Europe Economic Corridor (IMEC) is a planned economic corridor that aims to bolster
economic development by fostering connectivity and economic integration between India, the Middle East,
and Europe
India Middle East Europe Economic Corridor
● The corridor is proposed to run from India to Europe through the United Arab Emirates, Saudi Arabia, Jordan,
Israel, and Greece
● It is comprised of an eastern corridor connecting India to the Arabian Gulf and a northern corridor linking the
Arabian Gulf to Europe
● The corridor is expected to have far-reaching implications for trade, energy resources, digital connectivity,
and geopolitical dynamics, with the potential to increase economic relations between the EU and the Gulf
countries
● More importantly, the corridor is also seen as a strategic initiative that could create an alternative to China's
Belt and Road Initiative and enhance the influence of India in global geo economic and geopolitical terms
Africa and Geopolitics
● The region still remains underdeveloped, faces enormous
challenges such as flawed elections (coups, ethnic conflicts,
large population and low income)
● China has piqued its interest in African nations but that has
come with its own set of criticisms such as debt sustainability,
treatment by Chinese people of the Africans workers, etc.
(new breed of colonialism on the way?)
● The region is also finding convergence with middle powers
such as India, Brazil, Turkiye and other Middle Eastern
countries
● African Union also got admitted to the G20 group during the
recent summit that happened in India
Key geopolitics issues in Latin America
● Latin American consists of region of South America, Central America and also the islands of
Carribeans
○ Most of these regions were the colonies of Spain, France and Portugal
● Some prominent nations in this are: Argentina, Brazil, Chile, Peru, Colombia, Cuba, Venezuela, Mexico
and others
● These set of nations also because of their large natural resources have seen piqued interest from
China
○ China is one of its largest trading partners where it is also investing in areas such as space sector, large industries,
and even military presence
● The region grapples with high economic inequality, high inflation (hyper inflation in some cases for
example Argentina with 140% inflation rate)
● Region’s politics is also becoming interesting with tilt towards right - center sort of politics (for e.g.
recent Argentine elections to Brazil though where hard right got replaced with center left forces)
Key Multilateral institutions
● United Nations (UN)
● International Monetary Fund (IMF)
● World Bank Group
● Organization for Economic Cooperation and Development (OECD)
● QUAD
Some other key terms
● Left Wing politics
○ The left–right political spectrum is a system of classifying political positions, ideologies and parties, with
emphasis placed upon issues of social equality and social hierarchy
● Right Wing politics
○ Largely related to capitalism, social conservatism and primacy of traditional values and traditions