The world’s economic resilience depends on a reliable, global supply chain. Food, electronics, cars, oil, medical supplies – the essentials that we take for granted are often sourced from other nations and shipped across borders in just-in-time deliveries. If conflicts around the globe cause the disruption of this network, it can have a ripple effect on the global economy.
These geopolitical tensions can be triggered by a variety of factors, including national security concerns and civil unrest. Terrorism and wars, for example, have a direct impact on people’s lives, and are typically responded to with increased security measures and heightened global military deployments. In addition, globalization has exacerbated the effects of geopolitical tensions by increasing the interconnectedness of the global economy and societies.
Geopolitical tensions may seem like a distant problem that plays out in parliaments, press conferences, and global summits, but they have real-life implications for ordinary citizens. For example, a trade war in an oil-producing country means petrol becomes more expensive, while an outbreak of civil unrest drives up food prices and makes it harder to find work.
Amid rising tensions and a rise in protectionist policies, the costs of operating globally are at an all-time high. Across industries, CEOs have ranked geopolitical risks as the number one risk to business operations in 2025. With uncertainty driving strategy and investments, companies must prioritize operational resilience and workforce agility to thrive in this volatile landscape.