The geopolitical risk is back and its relevance to business goes beyond a mere interest in the international arena. Internationalization is an imperative for any company committed to growth. But today, the growth markets are largely in emerging economies, which governs political instability, legal uncertainty and geopolitical and macroeconomic risks. The company’s century-minded international expansion is required to be familiar with these risks and to assess the potential impact on your business.
In the first half of 2015 we find a world in transition and geopolitically unstable. This report identifies ten Geopolitical and macroeconomic risks that will determine the short and medium term of the global context. Among them, conflicts in Ukraine and the Middle East; the drop in oil prices; the economic crisis in Europe; the polarization of European voters increasingly closer to extremist parties or domestic reforms in Asian countries.
Any internationally oriented company should take them into account when assessing their international investment decisions.Risk prevention gives companies the capacity to act in advance, avoiding an international stage adversely affect their business. Also, knowing these risks supposed to be in time to make decisions, to make a change in business strategy involving a business opportunity.
Joan Navarro is Partner and Vice-president of Public Affairs at LLORENTE & CUENCA