GEOECONOMICS

The two lessons of this week focus on the economic and social benefits of international trade, and on the factors that determine trade flows between countries, with the aim of providing students with both theoretical foundations and practical insights into global trade dynamics. In the first session, students will explore how international trade enhances economic efficiency, broadens access to goods and services, and contributes to lowering production costs. Special attention will be given to the positive impact trade has on consumer welfare, particularly in terms of increased product variety and affordability. The lesson also introduces key theoretical and policy-driven motivations for global economic integration. The second session shifts to an analysis of the underlying forces that shape international trade, such as the availability of productive resources and differences in income distribution across countries. The lesson will cover the Ricardian model of comparative advantage, emphasizing the role of specialization in production, and how it leads to mutual gains from trade. Students will also examine the specific-factors model and the Heckscher-Ohlin framework, which highlight how resource endowments (land, labor, capital) and income distribution influence trade patterns and affect different economic groups within each country. Together, the two lessons aim to build a coherent understanding of why nations trade, who benefits, and how these mechanisms evolve in today’s interconnected global economy.

The two lessons this week examine the historical evolution of international trade and the rise of geoeconomics as a strategic framework for understanding global power relations. The third lesson offers a historical overview of international trade, starting from early commercial exchanges to the complex globalized system we know today. Students will explore key phases such as the first wave of globalization (1870–1914), the retreat into protectionism and de-globalization during the World Wars, and the postwar reconstruction led by new international institutions and trade agreements. The lesson also reflects on how technological innovation, economic policies, and shifting political orders have shaped global trade patterns. Finally, attention is given to the ongoing debate about the opportunities and tensions generated by contemporary globalization from economic, social, and geopolitical perspectives. The fourth lesson introduces the concept of geoeconomics, focusing on how economic instruments—such as trade, investment, and sanctions—have increasingly replaced military means as tools of international influence. Drawing from Edward Luttwak’s idea of “economic warfare,” the session analyzes how, during and after the Cold War, states began to use economic interdependence strategically. Students will explore the evolving role of emerging economies in shaping global competition and understand how geoeconomic logics now underpin the strategic behavior of key actors like China, the United States, and the European Union. The lesson aims to build awareness of how today’s global order is structured not only by political and military alliances but also by control over markets, technologies, and resources.

This week's two lessons focus on the key actors of geoeconomics and the strategic use of economic sanctions in global politics. The fifth lesson analyzes the main players in contemporary geoeconomics—those who exercise strategic influence through economic means. Students will explore the roles of nation-states, multinational corporations, and international institutions in shaping global power dynamics. The lesson highlights how public and private actors interact within global value chains, using tools such as trade, investment, regulation, and standard-setting to advance strategic interests. Through real-world examples, students will assess how economic instruments are deployed to influence geopolitical outcomes, and how state and non-state actors compete and cooperate on the global stage. The sixth lesson turns to economic sanctions as a case study of geoeconomic tools. Students will examine how sanctions are designed and implemented, the actors involved in enforcing them, and the strategic objectives behind their use. The session will also explore their effectiveness, limitations, and unintended consequences—both for target states and for the broader global economy. Special attention is given to recent case studies such as sanctions against Russia, Iran, and North Korea, helping students critically assess when and how sanctions can shape international behavior. These lessons aim to equip students with analytical tools to interpret how economic leverage is exercised in the international system and how power is increasingly mediated not only through military force, but through markets, supply chains, and financial networks.

This week’s lessons focus on two fundamental dimensions of geoeconomic strategy: the use of tariffs as tools of commercial and geopolitical influence, and the strategic control of natural resources through investment and regulation. The seventh lesson examines the role of tariffs in international economic relations. Far from being purely technical trade measures, tariffs are often used by states to protect key domestic industries, address trade imbalances, or exert political pressure on foreign governments. The session presents the main types of tariffs and explores both their economic motivations—such as safeguarding employment or stimulating industrial policy—and their geopolitical implications. Students will analyze the impact of tariffs on consumers, firms, and international relations, drawing on case studies such as the US-China trade war and EU protectionist measures in sectors like steel and agriculture. The goal is to develop a critical understanding of how tariffs operate as instruments of geoeconomic statecraft in a world of increasing economic competition and strategic interdependence. The eighth lesson turns to the strategic control of natural resources and the role of state-backed and private investments in shaping global political dynamics. Students will explore how access to critical resources—such as energy, rare earths, water, and agricultural land—has become central to the geopolitical positioning of major powers. Through examples involving China’s overseas investments, the scramble for energy in Africa and Central Asia, and the role of state-owned enterprises, the lesson highlights how the control and allocation of resources are used to influence alliances, dependencies, and development paths. This session will equip students to interpret how resource competition increasingly shapes international strategies and power asymmetries. Together, the two lessons emphasize the material foundations of geopolitical influence and the economic tools used by states and corporations to secure long-term strategic advantages.

This week’s lessons explore two essential aspects of global influence: the non-coercive power of attraction through soft power, and the strategic use of trade agreements and foreign investments as tools of geoeconomic influence. The ninth lesson focuses on soft power, a form of influence based not on coercion or payment, but on attraction and credibility. Students will learn how states leverage culture, education, media, sports, and political values to shape global perceptions and build long-term alliances. Through examples such as Hollywood, K-pop, Erasmus, BBC, and global sporting events like the Olympics, the session examines how countries such as the USA, China, the EU, Japan, and South Korea project influence. The lesson also highlights the strengths and limitations of soft power, comparing its reach and impact to that of hard and smart power in different geopolitical contexts. The tenth lesson shifts to trade agreements and strategic investments as instruments of geoeconomic strategy. Students will be introduced to different types of trade agreements—bilateral, regional, and multilateral—and analyze their economic and geopolitical consequences. These agreements are not only about market access, but also about shaping rules, standards, and strategic alignments. The lesson then focuses on foreign direct investment (FDI), sovereign wealth funds, and strategic acquisitions in key sectors such as energy, technology, and infrastructure, examining how these financial instruments are used to exert long-term influence. Real-world cases will illustrate how economic integration, resource control, and institutional ties are part of a broader strategy to enhance national power. Together, these two sessions provide a complementary perspective on how influence in the international arena is exercised: not only through force or pressure, but also through persuasion, partnerships, and embedded economic presence.

This week’s teaching is divided into two distinct but complementary sessions. The first lesson focuses on the role of multilateral organizations in the geoeconomic landscape, while the second lesson opens a new section of the course dedicated to the analysis of concrete case studies. In Lesson 11, students will explore how multilateral organizations—such as the WTO, IMF, World Bank, and regional development institutions—act as instruments of geoeconomic influence. These bodies do not merely facilitate cooperation or development; they also shape the rules of global competition, influence national policy space, and reflect the power asymmetries of the international system. Through the study of their structure, functions, and decision-making mechanisms, the session will highlight how multilateral institutions operate at the intersection of economics and geopolitics. Students will critically examine their impact on global trade governance, financial stability, and development strategies, drawing from both classical economic theory and more recent critiques. Lesson 12 marks the beginning of the second part of the course, which is focused on real-world case studies that illustrate how economic tools are used to shape strategic relationships among states. This first case focuses on China’s Belt and Road Initiative (BRI)—a global infrastructure and investment strategy aimed at expanding China’s geopolitical reach through the financing and construction of ports, railways, and other strategic assets across Asia, Africa, and Europe. The session will analyze how the BRI functions as a geoeconomic instrument: its financial mechanisms, diplomatic implications, and the risks and opportunities it poses for partner countries. Particular attention will be paid to how such initiatives foster long-term dependencies, shift regional balances of power, and challenge traditional models of economic influence. Together, these lessons provide a transition from theoretical foundations to applied geoeconomic analysis, enabling students to connect institutional frameworks with strategic state behavior in today’s complex international environment.

The two lessons of this week continue the case study section of the course, focusing on how the control of trade routes and technological supremacy become instruments of geopolitical influence. Lesson 13 examines the strategic importance of global maritime routes—such as the Suez Canal, the Strait of Malacca, and the South China Sea—as critical arteries for international trade and national security. The lesson explores how control over these chokepoints shapes power dynamics in the global economy. Through the analysis of emerging conflicts—including the Houthi attacks on Red Sea shipping and China’s growing assertiveness in the South China Sea—students will assess how maritime dominance is increasingly used as a geopolitical tool. The discussion will also consider naval capabilities, trade vulnerabilities, and the role of international maritime law in managing tensions and securing flows of goods and energy. Lesson 14 focuses on the economic and technological rivalry between the United States and China, with particular emphasis on the trade war and the strategic use of export controls. Starting from the imposition of tariffs and trade barriers since 2018, the session analyzes how economic interdependence has become a battleground for global leadership. A special focus is placed on semiconductors and advanced technologies, where the U.S. has introduced restrictions to curb China’s technological rise. Students will examine the economic rationale behind such measures, their implications for global value chains, and the broader political consequences of this intensifying rivalry. Real-world cases and policy documents will provide the basis for discussing the limits of economic decoupling and the risks of fragmentation in the global innovation system. Together, these lessons deepen students’ understanding of how control over physical and technological infrastructures is central to contemporary geoeconomic strategy, and how economic tools are increasingly used not just for prosperity, but for power.

The final two lessons of the case study section focus on two major geoeconomic developments of recent years: the sanctions regime against Russia and the strategic reconfiguration of global supply chains through friendshoring. Lesson 15 analyzes the economic sanctions imposed on Russia by Western countries following the invasion of Ukraine. The lesson examines the scope and evolution of these measures—targeting finance, technology, energy, and individuals—and assesses their economic effectiveness and geopolitical implications. Beyond Russia’s internal economic restructuring, the session explores how sanctions have triggered significant shifts in global energy markets, trade flows, and food supply chains. Particular attention is given to the unintended consequences on countries in the Global South, the role of alternative partnerships (such as Russia-China cooperation), and the broader debate on the utility and limits of sanctions as instruments of modern statecraft. Students will also be introduced to critical perspectives from scholars such as Robert Pape and Clifford Gaddy. Lesson 16 explores the emerging trend of friendshoring—the strategic relocation of supply chains to politically aligned or stable countries—as a response to rising geopolitical risk and global fragmentation. Students will study how the United States is reshoring key production sectors, notably semiconductors, through industrial policy, fiscal incentives, and trade protection measures under the Biden administration. The session also looks at how the European Union is diversifying its supply chains—particularly in critical raw materials like rare earths—by developing partnerships with Canada, Australia, and Japan. Through these cases, students will assess how supply chain security has become a central concern of economic policy, and how governments increasingly use industrial strategy not only to foster resilience but to advance their geopolitical positioning. Together, these two lessons illustrate how economic tools—both restrictive and constructive—are reshaping the international system, as states seek to navigate a world marked by instability, rivalry, and accelerating economic nationalism.

This part of the course includes meetings with CEOs and managers from major national and multinational companies to discuss how the reconfiguration of geopolitical and geoeconomic relations is influencing their business strategies. Examples of topics covered include: 1. Market entry strategies and risk management in emerging economies. 2. Adapting to international regulations and sanctions. 3. Managing global supply chains in the face of growing geopolitical tensions. This structure will allow students to develop both a theoretical and practical understanding of global geoeconomic dynamics, combined with direct and interactive engagement with industry leaders—an approach aligned with advanced teaching models adopted by institutions such as Harvard, Stanford, and Georgetown in the United States.

The first lesson of the tenth week includes a meeting with a CEO or senior manager, as in the two previous sessions, and starting from the second lesson, students will begin their presentations on topics covered during the course.

Student presentations on topics of their choice selected from those covered during the course.

Student presentations on topics of their choice selected from those covered during the course.