You may have observed how worldwide events can reverberate through the world economy. The geopolitical forces, from the Russia-Ukraine conflict to the upcoming US election, have significantly influenced industries and supply chains, not to mention consumer behavior.

But have you ever wondered what you would do if you were in the shoes of a multinational corporation faced with these challenges?

This provides an opportunity to view geopolitical and economic trends through a different lens as you set out on your professional journey.

The Russia-Ukraine Conflict and Economic Implications

Suppose you were the CEO of BP [1] and concerned about Russia’s aggression in Ukraine. Your company has invested billions of dollars in Russia, and you face enormous write-offs. What would you do? Would you cut your losses, even though that might mean losing an unquantifiable amount of money, or would you stay and hope a conclusion appears soon?

The best answers, of course, are much more ambiguous. Yet, as a professional, you must have an entrepreneurial mindset to assess these outcomes. Oil prices soar amid the Russia-Ukraine war, sparking a global rise in manufacturing and consumer goods costs.

That, in turn, has led to inflation and decreased consumer consumption, which eventually affected companies’ profitability.

The Middle East Conundrum

Another example of geopolitical tension affecting global economics is the Israel-Palestine conflict. This unprecedented event has triggered massive price actions in oil and energy sectors reliant on reasonably stable energy costs [2]. Therefore, companies like Chevron recognize that a conflict of this scale means interruptions to their supply lines and shot-up operational costs [3].

In the end, after understanding these dynamics, you, as a professional, should tweak your strategies using market data analysis and research skills to lower those risks.

US Elections and Economic Direction

Lastly, the political circumstances in the United States also have profound implications. If former President Donald Trump were to return to power, his proposed policies, including import tariff hikes [4], could significantly disrupt international trade. Companies like Apple have already said Tariffs will hurt their supply chain and pricing strategies [5]. While you consider your career options, it is vital to stay vigilant about the cloud of unpredictability surrounding elections.

The more you know about the latest trends, the more likely people will see you as a visionary. Read up-to-date reports from the top organizations regularly to keep your finger on the pulse of the global economy.

Conclusion

The interaction between world politics and the global economy is fluid in nature. It thereby demands awareness, vigilance, and a readiness for change or learning. Thus, build your network in as many places as possible to appear professional and be more valuable to future employers and clients.

At Rushford Business School, we prepare students for eclectic challenges by inculcating the unthinkable and out-of-the-box mindset. From an educational standpoint, we focus on your academics and technical skills related to communications, networking, and personal development to succeed in a globalized world. Keep these insights in mind as you begin your career. They will set you apart as an informed candidate for tomorrow’s economy.