The term "geopolitics" has surged in usage during earnings calls and corporate filings, with S&P 500 companies mentioning it nearly three times more often than two years ago
Major Western multinationals are increasingly aligning themselves with like-minded nations, shifting their focus from emerging markets to geopolitically compatible regions
UN foreign-direct investment data reveals a reorganization of the world into rival blocs based on UN votes regarding Russia's invasion of Ukraine
Experts view this shift as a historic change, ushering in an era of global upheaval and unpredictability
Governments, scarred by the pandemic, are urging companies to consider national interests, offering subsidies as incentives to bring production back home
European Central Bank President Christine Lagarde warns of a fragmented global economy with competing blocs and shared values
The IMF estimates that extreme scenarios of global economic division into blocs could reduce output by up to 7%, equivalent to wiping out the French and German economies
Western countries that condemned Russia's invasion account for over two-thirds of global GDP, while China is at the core of the opposing bloc
Despite geopolitical tensions, global commerce remains resilient, with corporations eager to pursue profits and lucrative markets
Greenfield FDI data reflects a significant shift, with Western companies investing more in like-minded countries, signaling a pivot in economic strategies