New geopolitical-economic order framework shows firm strategies vary under two types of state-market order
A new paper published in Global Strategy Journal develops a geopolitical-economic order framework suggesting that the extent of geopolitical competition incentivizes states to create one of two types of economic order: a market-based order built on laissez-faire and mutually bene
The publication of this paper in the Global Strategy Journal is significant because it provides a new framework for understanding the complex relationships between states and markets in the context of geopolitical competition. By identifying two distinct types of economic order, the paper sheds light on how firms can develop effective strategies to navigate these different environments. This is particularly relevant for students of international business and economics, as it highlights the importance of considering the broader geopolitical context in which firms operate.
The framework developed in the paper suggests that the level of geopolitical competition can influence the type of economic order that emerges, with high levels of competition leading to a more state-led economic order and low levels of competition leading to a more market-based order. This has important implications for firms, as they need to adapt their strategies to the specific economic order in which they operate. For example, firms operating in a state-led economic order may need to prioritize building relationships with government officials, while firms operating in a market-based order may need to focus on developing competitive advantages through innovation and efficiency.
As students of international business and economics, it will be interesting to watch how this framework is applied in practice, particularly in the context of emerging markets and rising geopolitical tensions. Will firms be able to successfully navigate the complexities of different economic orders, or will they struggle to adapt to changing circumstances? How will governments balance the need to promote economic growth with the need to maintain national security and competitiveness? These are just a few of the questions that this paper raises, and it will be important to continue monitoring developments in this area to see how the framework is refined and applied in the years to come.
Originally reported by phys.org. StudentNews adds analysis for science & discovery readers.