© Copyright Acquisition International 2025 - All Rights Reserved.

Article Image - Seven Ways Geo-Economics Is Changing the Global Economy
Posted 27th February 2015

Seven Ways Geo-Economics Is Changing the Global Economy

Report from the World Economic Forum's Global Agenda Council on Geo-economics identifies seven geo-economic trends that could decelerate or even reverse globalization.

Mouse Scroll AnimationScroll to keep reading

Let us help promote your business to a wider following.

Seven Ways Geo-Economics Is Changing the Global Economy
Image

Seven Ways Geo-Economics Is Changing the Global Economy

With sanctions, competing trade regimes, currency and price manipulation increasingly taking the place of conventional warfare, the implication of these forces could be an unravelling of the global economy, a new report by the World Economic Forum’s Global Agenda Council on Geo-economics finds.

According to the report, Seven Challenges to Globalization, the re-emergence of geo-economics comes at a time when many states in the developed world – including Europe and the United States – faced with high levels of public debt and weak domestic support for engagement are choosing to project power through economics rather than military force. This, in turn, is weakening multilateral institutions designed to safeguard the free flow of trade and investment, such as the World Trade Organization, and making conditions for international trade more difficult.

The individual geo-economic challenges identified in the report are:

1. Economic warfare: Powerful states are looking to project power through their influence over the global economy and through their control over multinational corporations.

2. The geopoliticization of trade talks: Current major regional talks are likely to accelerate the multi-polarization of the world, resulting in increased competition among regional blocs far beyond trade.

3. State capitalism 2.0: The re-emergence of state capitalism after the financial crisis is also turbo-charging competition between governments for power and influence.

4. Competition for gated markets, not natural resources: Competition between states in the geo-economic era will be driven by a quest for markets rather than national resources, impacting producers of natural resources.

5. The survival of the biggest: As global leadership breaks down, regional hegemons are empowered and, in turn, are better equipped to box in countries in their peripheries.

6. China’s infrastructure-driven alliances: China has massively increased its foreign direct investment and loans to countries where it seeks to enhance access to commodities.

7. The decline in oil prices: After three years of unusual stability at about $100 a barrel, oil prices fell steeply in the second half of 2014, dropping from $115 a barrel in June to around $60 by December.

Mark Leonard, the Chair of the Global Agenda Council on Geo-economics, said: “As tensions between great powers increase, international businesses are increasingly finding that political risk no longer just means instability in the developing world or avoiding war zones. The global financial system has become a battleground, just as sanctions, consumer boycotts, preferential treatment for national champions and the creation of gated markets raise the prospect of long-nurtured investments disappearing overnight. The implications for business and those that look to trade as a way of lifting people out of poverty are deeply concerning.”

In seeking to provide answers for governments and businesses looking to navigate the rising tide of geo-economics, the report concludes with five lessons. These include pooling of resources among smaller economies, localization of global businesses for particular markets, and a parallel development of regional as well as global governance institutions.

Categories: Finance


You Might Also Like
Read Full PostRead - Eye Icon
Microsoft to Acquire LinkedIn
M&A
13/06/2016Microsoft to Acquire LinkedIn

Microsoft Corp. (Nasdaq: MSFT) and LinkedIn Corporation (NYSE: LNKD) on Monday announced they have entered into a definitive agreement under which Microsoft will acquire LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive

Read Full PostRead - Eye Icon
How to Develop Strategic Partnerships in the Home Improvement Industry
News
05/05/2023How to Develop Strategic Partnerships in the Home Improvement Industry

Every industry niche has opportunities within it for organizations to join forces and benefit from building a business partnership together.

Read Full PostRead - Eye Icon
The Age of Big Data
Innovation
05/12/2016The Age of Big Data

ORTEC Consulting is a highly renowned specialist in business analytics. We support companies by providing analysts with in-depth experience in advanced analytics.

Read Full PostRead - Eye Icon
Why Every Event Planner Needs a Venue Management Platform
News
24/02/2022Why Every Event Planner Needs a Venue Management Platform

Event planners need to use venue management platforms if they want their events to run as smoothly and successfully as possible. With the best venue management software, every element of an event lifecycle is covered, from registration and payment to reports a

Read Full PostRead - Eye Icon
Three Ways to Boost Your Business with Artificial Intelligence
Strategy
28/03/2023Three Ways to Boost Your Business with Artificial Intelligence

Artificial intelligence (AI) technology is either going to make the world better or it’s going to take over and render us obsolete. The former is more likely, but we can’t rule out the latter scenario, according to Elon Musk.

Read Full PostRead - Eye Icon
Zegona Acquisiton of Telecable
Innovation
03/08/2015Zegona Acquisiton of Telecable

Zegona Acquisiton of Telecable

Read Full PostRead - Eye Icon
Malicious Intent Outweighs Technology as Biggest Threat to Personal Data
Legal
15/03/2019Malicious Intent Outweighs Technology as Biggest Threat to Personal Data

Against the backdrop of a complex and growing cyber threat landscape, organisations are waking up to the fact that one of the biggest chinks in their armour against a data security breach is humans. In fact, a staggering fifty two percent of respondents believ

Read Full PostRead - Eye Icon
Gold as an Investment Option in Today’s World
Finance
01/06/2023Gold as an Investment Option in Today’s World

Are you searching for the best investment option in today's world? It's none other than gold! It's a natural and sensible investment option for an investor as this is an inert metal, and doesn't levy any interest on you.

Read Full PostRead - Eye Icon
Building upon Success
Innovation
20/06/2017Building upon Success

Most Outstanding for Restoration Architecture 2017 award winner NFA architects is an established and experienced practice formed of a senior director with dedicated architects, designers and technologists based in Kent. We interviewed the firm’s Nick Farnell



Our Trusted Brands

Acquisition International is a flagship brand of AI Global Media. AI Global Media is a B2B enterprise and are committed to creating engaging content allowing businesses to market their services to a larger global audience. We have 14 unique brands, each of which serves a specific industry or region. Each brand covers the latest news in its sector and publishes a digital magazine and newsletter which is read by a global audience.

Arrow