Which statement is FALSE?

A. Geophysical resource endowment is equal among countries.
B. A country heavily endowed with a resource may find itself with more political leverage when dealing with another country in desperate need of that resource.
C. Countries have different priorities, and these priorities may shift from time to time. Furthermore, these priorities may become subjective.

Correct Answer: A

A is false: It is highly unequal.

B is true. When dealing with a country that is in dire need of a certain resource, a nation that is richly endowed with it may discover that it has more political clout.

C is true. The national interest hierarchy may become less objective where one government may prioritize particular issues differently than its predecessor. Investors should understand the hierarchy of interests and how they may give rise to geopolitical risk.