Adapting Your Business to New International Scenarios

The world is changing rapidly, and businesses must be prepared to face the challenges that arise and seize opportunities wherever they emerge. 

Various international crises and trade tensions among major global powers make it necessary to review trade routes and business and marketing strategies, aiming to reduce dependence on hostile or at-risk countries and prioritize business with Western partners who share values, visions, and goals. 

The vulnerabilities of certain production chains came to light during the COVID-19 pandemic, as companies faced shortages of raw materials or essential components due to restrictions imposed by supplier countries or virus containment measures. 

The Ukrainian crisis, with the potential global food catastrophe as Putin took control of Ukrainian wheat, and the blockage of gas supplies to Europe during the Israel-Palestine crisis further emphasized the need to reconsider trade routes and business strategies.

One of the primary challenges is to reduce commercial dependence on countries considered hostile or at risk, such as Russia, China, North Korea, Iran, and the BRICS nations (Brazil, Russia, India, China, and South Africa). 

These countries can pose threats to political stability, national security, and human rights in partner countries. Additionally, they may impose tariff barriers, sanctions, restrictions, or trade distortions, harming businesses and states dependent on them. 

It is advisable to minimize exchanges with these countries, avoiding investments or offering technological or strategic know-how, and favoring more "reliable" partners like the European Union, the United States, Canada, Japan, South Korea, Australia, New Zealand, Switzerland, Norway, and Western Balkan countries. 

Goal: Reduce dependence on hostile or at-risk countries and prioritize business with Western partners who share values, visions, and goals.

A second challenge is to bring productions, especially strategic ones, back to the homeland or at least to nearby and reliable countries. This reshoring process involves relocating a company's production from a foreign country to its country of origin or alternatively to a country that shares values, visions, and goals.

A third challenge is to optimize and develop energy sources domestically to achieve increasing energy independence. Growing environmental awareness, increasingly uncertain energy supplies, and the transition to a green economy compel companies to optimize and develop domestic energy sources. This involves focusing on energy efficiency, renewable and clean sources, and utilizing underground resources (primarily gas and oil). Energy independence provides several benefits, including greater security, political stability, and competitiveness, as well as reduced environmental impact through the use of renewable and clean sources. Goal: Achieve increasing energy independence and reduce the environmental impact of business activities.

In this context, adopting targeted strategies and flexibly adapting to emerging challenges can be crucial for business success in the rapidly evolving international landscape. There are many challenges, risks, and uncertainties, but the West and its businesses can overcome them this time because it is finally understood that the free market alone is not enough to pacify the world. Tigers remain tigers, but as the saying goes, 'better an ugly truth than a beautiful lie.' It is from the truth that the West starts anew and will prevail.