According to a panel of experts at a recent geopolitics conference, the decisions and operations of global businesses today cannot be separated from the intricate complexities of the geopolitical and economic dynamics that increasingly impact them. As the moderator, Velina Tcharkova, Founder & Geopolitical Strategist, of FACE For A Conscious Experience, set the stage, “Longstanding conventions regarding the stability and functioning of our business and trade are consistently tested by unforeseen events.”
A key point emphasised by multiple panelists was that geopolitics produces a combination of risk and opportunity – the two sides of the same coin. As Thiago de Aragao, CEO, of Arko International, highlighted, “Risk is a brother of opportunity. Everything depends on where you stand and from which angle you look at it.” He also stressed the interconnectedness of modern geopolitical affairs, noting “There is not a single individual act produced by geopolitics. It’s an intertwined system that even when you believe that it’s not affecting you or your business, in fact it is.”
The panelists discussed a multitude of prominent geopolitical risks that today have major implications for global businesses and trade flows, including potential conflicts over Taiwan as tensions persist between the United States and China, broader confrontations between major powers like the U.S. and Russia, and threats to the security of vital maritime trade routes and logistical networks worldwide.
However, while assessing risks, the panelists also pointed to emerging opportunities in this environment of geopolitical change for nimble businesses. For example, Patrycja Pendrakowska, Head of the Boym Institute and analyst of China’s foreign policy and economy, noted that India is rapidly developing into a technological powerhouse that could provide alternative technologies to those of the U.S. and China in the coming years. Aditya Chand, Founder and CEO, of Through The Lens Entertainment (TTLE), suggested that as businesses expand into new overseas markets, there is an increasing emphasis on respecting local cultures and customs.
In a world marked by complex interconnections and geopolitical uncertainty, businesses must take both risks and opportunities into account in their decisions and operations. As Aragao aptly concluded, “Understanding risks is understanding the entire domino effect of a decision. For good and for bad.” Carefully analysing the intricacies of the geopolitical landscape is crucial for businesses seeking to navigate today’s highly intricate global business environment.
