Whether caused by supply chain bottlenecks or geopolitical conflict, global events can send shockwaves across industries, impacting profitability and wiping billions off balance sheets. Those that have their eyes open to these risks can mitigate them with timely information and strategic decisions. But those that don’t, risk being blindsided by a disruption that leaves them behind the curve and lose out on profits and reputational equity.
While there is veracity in the statement that ‘global events and globalisation impact all places’, it is important to recognise that the extent of these impacts are often unequal (Rigby, 2021). For example, despite the fact that the warming climate has universal effects, the worst hit regions are the ones that have contributed the least to it (Halpern, 2015).
The same is true for other types of global events, such as cultural exchanges. These often cause shifts in demographic trends as people migrate to different areas, often in response to war or economic opportunities. They also lead to the evolution of cultural practices and artistic expressions in response to new societal issues or values.
Additionally, global events frequently prompt changes in foreign policy amongst nations as they seek to navigate a changing landscape. This has been particularly prominent in recent times as both the US and the Soviet Union sought to expand their spheres of influence across Europe, leading to over 40 years of distrust between the two nations and ultimately culminating in the collapse of the USSR in 1991.