Geopolitics & Business: How to Navigate an Uncertain World

Extending the reach of your business to other countries has likely had many benefits for the overall success of your company, but various geopolitical issues can also have an impact on your ability to efficiently operate in multiple locations. Fortunately, there are steps you can take to analyze the current geopolitical threats within any given area and use that information to adjust your operations to increase productivity and safety. Here are some of the most important aspects of geopolitics to be aware of that have the potential to affect your international business.

What Are Geopolitics?

Geopolitics refer to the various ways in which organizations and other groups in different geographic locations interact with each other, especially in different countries. The level at which these organizations are able to work together to advance toward common goals can be largely influenced by the major political views that the majority of people in the geographic areas have and the major political issues that the countries are currently facing, especially among countries with rival governments that discourage such partnerships for political reasons.

Geopolitics and International Business

In the case of international business, political unrest can have an effect on a company’s ability to successfully trade and conduct other business with partner companies and even different locations within the company that are in other countries. Even if the leaders of each of the international offices that make up a global corporation want to work together peacefully, the governments of those countries can sometimes hinder the company’s productivity efforts.

Effects of the COVID-19 Pandemic on International Business

The COVID-19 pandemic and its effects on everyday life and business have become one of the most disruptive geopolitical issues in recent years. Because the governments of various countries are responding to the pandemic in vastly different ways, it can be challenging to conduct international business in ways that are acceptable for each country involved. From the safety threat of the virus itself to the travel bans, forced business closures, protests, and other political issues that it has caused, the pandemic has caused problems for nearly every international business.

In addition, growing rifts between various governments that are a result of how other countries are handling the pandemic are also beginning to discourage certain countries from cooperating with one another. Understanding how these political issues are affecting particular areas is key to adapting to the current political climate and finding new ways to maintain successful international relations within the company.

Other Current Geopolitical Issues

Although the pandemic is the first thing on many people’s minds right now, it is important not to forget about the other geopolitical issues that could impact your business. From elections and political protests to increases in violence across the globe, geopolitics are having a more significant impact on international businesses than ever before. Fortunately, paying close attention to the political climates of the areas in which you operate can go a long way toward minimizing the threat of geopolitical issues to your business.

Government Changes

No international agreements are set in stone, and various changes in government have the potential to impact how the various locations of your international business are able to work together. From the United States election to recent changes in the structure and policies of the European Union, changes in who runs a particular country and how may affect international business within those countries.

Political Protests

Large political protests can have a significant impact on the safety of workers within a particular area, as well as the business’s ability to successfully get shipments into and out of the country on time. Recent protests in Hong Kong, for example, have contributed to growing concerns surrounding the efficiency and safety of operating within that region. By analyzing specific times when this threat might increase, such as National Day, international businesses can adjust their schedules to avoid conducting important business during the times that are likely to be the most dangerous.

Increased Violence

Some countries are known to be more dangerous than others, and taking precautions has generally been successful in helping international businesses operate safely. However, increased violence within a particular region can happen quickly, such as the recent rise in robberies and shootings in South Africa. Having a thorough understanding of how likely such events are to happen and which direction trends are moving in can help businesses take steps to minimize the likelihood of encountering violence.

Responding to Geopolitical Threats

Given that many of these geopolitical issues are likely not going anywhere anytime soon, it is wise for global businesses to be diligent about paying close attention to the current political climate of each country that houses a location of the company and how these political issues might affect the company, as well as the countries that the business frequently trades with or even passes through. Utilizing an AI-driven tool, such as Hyperion’s Pulse, provides global businesses with a real-time assessment of the level of unrest within a particular area and predictions for how that unrest might affect the business in the coming weeks and beyond. You can see below an example of an assessment for Belarus.

Businesses that proactively notice an increase in unrest in a particular country or region can then use this data to determine the next steps to take to continue operating with the lowest possible level of risk, both to the business itself and to individuals within the company. Pulse analyzes a variety of social, political, and economic factors to provide international business owners and security teams with the most complete picture of what the possible concerns within a particular area look like at any given time, which can be used to catch and respond to problems before they have a chance to negatively impact the business.

At Geospark Analytics, we are proud to help international business owners navigate the challenges that today’s world can cause. Political tensions between countries can have an impact on your ability to effectively work with other locations of your business, but you don’t have to depend on the often inaccurate news to tell you what is happening in a particular region. Contact us today to learn more about how Pulse can help your business mitigate geopolitical issues or the other services we offer!