Analytical Study of International Business Operation: Impact of Geopolitical Events

Abstract

For a long time now we have been using geopolitics to describe the practice of states to control and compete for territory (Rangan Gupta, 2019). These events being global in nature and with the modern world being highly interconnected are likely to affect all economies and their international economic relations, i.e. international trade. Geopolitical risks are likely to affect international trade by raising the costs to private agents engaging in international business through not only new risks being created but also via escalation of existing risks. This line of reasoning is validated by the International Monetary Fund (IMF) which highlighted geopolitical uncertainties as a salient risk to the economic outlook. (Rangan Gupta, 2019)