The national interest is predetermined by geopolitics or the history of a country. The year 2020 has defined itself as the Covid year. It has managed to devastate the entire world all by itself. The economies of the big powerful countries like China crumpled. The share market experienced a great fall, the GDP growths of various countries displayed negative trends. Demonstrating the problems that have arisen due to this are :
• The Great Decoupling- The decoupling of the US and Chinese tech industries is already causing disruptions in bilateral technology, expertise, and investment flows. This will result in a widening market, fiscal, and cultural divide that may become irreversible, casting a deep geopolitical chill over global commerce in the coming years.
• The MNC - Modern multinationals have many impressive assets: famous brands; formidable research and development and new-product capabilities; global scale for sourcing and transferring knowledge; cost and scale advantages for manufacturing and logistics; attractive career opportunities, pay and benefits; advanced management practices; financial staying power, and market and political clout. Looking forward to the next decade, we believe that to succeed in global markets, particularly emerging markets, multinationals need to concentrate simultaneously on three key disciplines:
1) the design of the organizational structure,
2) the management processes for allocating resources and for measuring and rewarding performance, and
3) the company’s cultural values and behaviour .
• Economies of Climate Change - The WMO says the warming experienced over the past decade is taking its toll on the natural world. In the next decade, climate change will put governments, investors, and society at large on a collision course with corporate decision-makers, who must choose between ambitious commitments to reduce their emissions and their bottom lines. Civil society will be unforgiving of investors and companies they believe are moving too slowly. Oil and gas firms, airlines, car makers, and meat producers will feel the heat. Disruption to supply chains is a meaningful risk. Investors will reduce exposures to carbon-intensive industries, sending asset prices lower. All this as warming makes natural disasters more likely, more frequent, and more severe.
Following a domino effect of the pandemic, many other events happened all around the world that shook the world to its core, all these aforementioned changes can and will affect the geopolitical situation in the upcoming decade.
Civil society will be unforgiving of investors and companies they believe are moving too slowly.
BY:
Esha Anand
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