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What is Geopolitical Risk and Should Investors Worry? – Part 3

Understanding geopolitical risk is important in a world that has become more closely intertwined thanks to rapid advances in communications and the rise of globalization. It also can have a direct relationship to the amount of risk investors are willing to take. Geopolitics is defined as the study of how geography and economics influence politics and the relations between countries. Frances Donald, a senior economist with Manulife Asset Management, says while it’s important to try to keep on top of geopolitical risk, there are other items that matter every bit as much.