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How Production, Consumption, and Transfers of Wealth Impact Geopolitics

While we here at Geopolitical Futures do not claim to specifically be economists, economics does play a major role in the geopolitical field and so can not be ignored. Thus, the production, consumption, and transfers of wealth are all major factors that impact geopolitics. Production here refers to the creation and exportation of goods and services, while consumption is the use of those goods and services. The transfer of wealth between nation-states forms the backbone of economic theory and is often a major cornerstone of international trade and diplomatic agreements, and the shifting of these chains of trade can have a significant impact on a country’s geopolitical standing.

A country’s production levels can impact its geopolitical status in a number of ways. For example, a country with high levels of production may be able to trade goods and services for other resources, such as oil or mineral rights. To some extent, this is just a simple economic exchange. However, the geography and culture of a country may influence its ability to barter economically favorable trade deals.

Likewise, the level of consumption can also impact its strength on the international field of geopolitics. For example, a country with high levels of consumption may be able to exert political pressure on other countries to ensure that its citizens have access to the goods and services they want. They may also be seen as a valuable market for other countries’ products and be courted accordingly. On the other end, excessive demand from these high consumption countries can also put pressure on countries focused on meeting these consumption needs, leaving them vulnerable and at a disadvantage when it comes to trade negotiations.

Infrastructure can also have an impact on its geopolitical status. For example, a country with a well-developed infrastructure may be able to support a high level of economic activity and may be seen as a desirable partner for trade and investment. Conversely, a country with poorly developed infrastructure may find itself at a disadvantage in the international arena, but may also find itself attracting international investors who can help build up both industry and infrastructure.