Financial Consequences of Geopolitical Turmoil and Trade Restrictions
DOI:
https://doi.org/10.26437/ajar.v11i1.862Keywords:
geopolitical conflict, geo-economics, sanctions, trade. warAbstract
Purpose: This article examines the economic ramifications of geopolitical conflicts, considering the pivotal role of contemporary sanctions policies on the global stage.
Design/Methodology/Approach: This study employs a qualitative methodological framework based on content analysis, using grounded theory toolkit elements. The research was carried out within a constructivist paradigm.
Findings: Due to the metamorphosis of the global political system, there has been a discernible increase in the prevalence of geopolitical conflicts. These conflicts exert an indirect influence on the global economy and a direct impact on national economies. Significant gaps exist in the existing research on the impact of sanctions, and the relationship between geopolitics and geoeconomics is complex, multi-layered and contradictory.
Research Limitation: This limitation highlights the inherent challenges in qualitative research while acknowledging the value of rich, detailed analysis provided by this methodological approach.
Practical Implication: Navigating between geopolitics and geoeconomics should be a strategic guide for international companies and industries. The implications of ongoing conflicts and tensions on financial and trade strategies should be comprehended, considering the interests of affected regions and various nations/politicians’ stakeholders.
Social Implication: The research showed that the existing and potential impact of sanctions on the population of affected countries and the government's policy should be carefully studied and weighted when designing the strategy and roadmap for sanction imposition, with the double aim that sanctions should not lead to a violation of humanitarian law regarding population while being efficient in changing countries’ aggressive politics.
Originality/Value: The research deepens the conceptualisation of the geopolitics/geoeconomics ratio, particularly regarding the effect of sanctions.
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