Playbook rules are fast changing stuff nowadays. Led by America most western nations are taking things to their own hands when setting policies & procedures to disrupt marketing of, up and coming products manufactured by countries from the east. Unless these countries toe the western lines, it spells trouble for them selling their products in western nations. What are these geoeconomics disruptions?
In geoeconomics, there are two kind of disruptions: primary and third-party. In this blog I write about the primary ones. An aggressive nation has both these disruptions readily available for them or can be passed through via urgent resolutions in their senates or parliaments. America, for example has plethora of Acts that allow one form or other intimidatory tactics couched in legalised language that can be set upon on victim countries.
Primarily, disruptions are caused when aggressive power imposes three type of disruptive course of action. The major one is trade-related where tariffs are increased to intolerable level making exporting nation’s products too expensive in the aggressive country. There are many other variants too. Import regulations is one such area where importation of a product or a range of products suffer either restrictions in terms of the quantum of importation or total ban. The latter can have serious implications because whatever the quantum already imported into the aggressive country had to remain in stores and rot.
To be sure, out of the remaining two types of primary disruptions, investment is the more potent one. The aggrieved nation is subjected to a series of investment restrictions where its companies are barred from entering into joint-ventures with firms in the aggressive country. Moreover these firms are placed under serious strain where the stock exchanges would not allow the shares of the firms concerned be traded in the exchange or allow the firms to invest and trade in shares of other companies in the stock exchange.
Putting on the other track, the less serious one to the eye but having a greater impact over moral fabric of the victim firm is the primary disruption of instituting civil or criminal investigation into the affairs of the firm and its staff. True enough that most of these investigations are unfounded and initiated on flimsy grounds. Yet the magnitude of the matter lies where placing the victim firm under cloud itself is so detrimental to the present status and future growth of concerned firm. Victim firms need therefore to fight such fictitious accusations tooth and nail. Recent example is the arrest & detention of Huawei CFO Meng Wanzhou by Canadian Authorities on instigation by America and spirited defence by China to free her!
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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