The civil war in Ukraine, the civil war in Iraq, and the relaxation of US sanctions against Iran have demonstrated that political instability is now a very serious factor for international markets. US decline has given the various great powers of the world a larger share of global military and economic power, and these great powers often act in ways that are highly disruptive to global financial markets. It is now imperative for international investors to have a proper understanding of international relations and political risk factors, otherwise they will be certain to make poor investment decisions.
The problem at hand is that the current International Relations academic establishment is simply wrong about the causes and motivations of conflicts in international politics. In particular, John Mearsheimer — arguably the most influential International Relations theorist alive today — has produced an extremely influential, and extremely wrong, International Relations theory by the name of “offensive realism.”
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