Trade, resources & economic power

Say it: FOR-eign in-VEST-ment
Capitals show stress; this is a reading guide, not phonetic spelling.

An overseas company may build a factory or buy a stake in a business. Other foreign investors buy financial assets. Investment can bring finance and expertise, but the outcome depends on the terms, the project and how benefits are shared. Foreign investment is not the same as buying imported products.

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attract foreign investment · foreign investors

Say it: eco-NOM-ic di-ver-si-fi-CA-tion
Capitals show stress; this is a reading guide, not phonetic spelling.

A country dependent on one export is exposed when its price falls. Developing other viable sectors can spread that risk. Diversification is more than announcing unrelated projects: the new activities need skills, infrastructure, demand and workable business models.

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diversify an economy · reduce dependence on one sector

Say it: IN-fra-struc-ture
Capitals show stress; this is a reading guide, not phonetic spelling.

Infrastructure includes transport, energy, water and communications systems. A mineral deposit can remain difficult to develop if there are no reliable roads, ports or power supplies. Building infrastructure creates future maintenance needs as well as an initial construction bill.

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invest in infrastructure · strain infrastructure

Say it: sup-PLY CHAIN
Capitals show stress; this is a reading guide, not phonetic spelling.

A supply chain includes inputs, processing, manufacturing and distribution, often across several countries. Some links may be easy to replace; others require specialist equipment or skills. Reliable supply depends on how the stages work together.

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disrupt a supply chain · secure supply

Say it: BOT-tle-neck
Capitals show stress; this is a reading guide, not phonetic spelling.

Imagine a mine can supply 100 units a day, a refinery can process 40, and a factory can use 80. The refinery limits output to 40. Expanding the mine alone will not remove that constraint. The bottleneck can move after investment improves one stage.

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remove a bottleneck · a processing bottleneck

Say it: e-CON-o-mies of SCALE
Capitals show stress; this is a reading guide, not phonetic spelling.

A firm can spread fixed costs, such as a factory building, across more units. Buying in larger quantities can also reduce costs. Total spending may rise while cost per unit falls. Large size does not guarantee efficiency; coordination and other problems can eventually increase average costs.

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achieve economies of scale · benefit from scale

Say it: com-PAR-a-tive ad-VAN-tage
Capitals show stress; this is a reading guide, not phonetic spelling.

Opportunity cost is what you give up by choosing one use of your resources. Country A gives up two units of food to make one machine; country B gives up five. A has a comparative advantage in machines. This concerns relative trade-offs, not simply which country is richer or can produce the most.

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have a comparative advantage in · specialise in

Say it: com-MER-cial vi-a-BIL-i-ty
Capitals show stress; this is a reading guide, not phonetic spelling.

Ask whether expected revenue can cover the relevant costs and support continued operation over time. A mineral can exist underground without being profitable to extract. Commercial viability is a financial judgement; a government may also consider security, environmental or social benefits.

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assess commercial viability · commercially viable

Say it: PRICE vol-a-TIL-i-ty
Capitals show stress; this is a reading guide, not phonetic spelling.

Volatile prices move substantially or unpredictably. They do not simply move upwards. A producer can struggle when prices fall, while a manufacturer can struggle when input prices rise. Long-term contracts may reduce exposure, although their protection depends on the terms.

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high price volatility · exposure to volatility

Say it: SUB-si-dy
Capitals show stress; this is a reading guide, not phonetic spelling.

A subsidy can take forms such as a grant or favourable financial treatment. It may help build capacity, protect jobs or support a public goal. It can also benefit projects that remain inefficient. Ask who receives support, who pays, and what measurable outcome is required.

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provide a subsidy · subsidise production

Say it: in-DUS-tri-al POL-i-cy
Capitals show stress; this is a reading guide, not phonetic spelling.

Tools can include research funding, training, procurement, infrastructure and subsidies. Industrial policy is broader than one payment to one company. A useful discussion weighs the capability gained against costs, implementation risks and the treatment of competing businesses.

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pursue industrial policy · build industrial capability

Say it: stra-TE-gic de-PEND-ence
Capitals show stress; this is a reading guide, not phonetic spelling.

Some imports are easy to replace; others are essential and have few substitutes. Dependence becomes strategically significant when disruption or pressure could prevent important decisions or activities. It does not mean that every imported product creates the same risk.

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reduce strategic dependence · dependence on a single supplier

Say it: re-SIL-i-ence
Capitals show stress; this is a reading guide, not phonetic spelling.

Resilience can come from alternative suppliers, stocks, spare capacity, recycling or adaptable production. It does not promise that nothing will go wrong. Nor does it require producing everything domestically. Alternatives must be genuinely usable and not share the same hidden dependency.

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build resilience · a resilient supply chain

Say it: ge-o-po-LIT-i-cal LEV-er-age
Capitals show stress; this is a reading guide, not phonetic spelling.

If another country needs a material you can restrict, that dependence may strengthen your negotiating position. Leverage is potential influence, not proof that control will always be used or will always succeed. Buyers can seek substitutes, stockpiles or new partners.

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gain leverage · use leverage · bargaining power

Say it: stra-TE-gic au-TON-o-my
Capitals show stress; this is a reading guide, not phonetic spelling.

Autonomy concerns the freedom to act. It need not mean isolation or complete self-sufficiency. A country may improve autonomy through trusted partnerships and several suppliers. The aim is to prevent an external dependency from removing important options.

Use it naturally
strengthen strategic autonomy · preserve room to act