More and more company executives around the world are worried about geopolitical, political and macroeconomic instability in the world.

There now exist a high global economic interconnectedness of nations. But geopolitical developments that occur on nations, have serious consequences on the international business interests, making it vulnerable.

These harmful effects, the so-called geostrategic risks have a negative impact on company profits.

Accordingly, the international relations of today are characterized by two important trends, the changing global balance of power and the mounting tensions between superpowers.

The first geopolitical development that makes international economy vulnerable is the increasing usage of sanctions, as in Russia and China.

The second form of geopolitical development is the harmful effects of the strategic economic policies of other countries.

Companies are advised to implement potential strategies such as risk diversification, risk reduction and economic countermeasures.

Simple techniques such as trend analysis and relevant scenarios can support companies in understanding and preparing themselves.

On the other hand, our incoming President when it comes to China, what matters is development and bilateral diplomacy rather than confrontation and prevention. He is speaking out of geopolitical conviction rather than political calculation.

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Tidbits:

Scores of Muslims are reportedly turning to Christianity in Europe. One convert told a local Germany newspaper, “In Iran I began to look into various religions. Then I really asked myself why I live all the time in fear.” “Today my new life begins. Now I belong to Jesus.”

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“Freedom is nothing but a chance to be better.” (By Edgar Allan J. Tac-an)