Appraising boycott as geoeconomics strategy

Boycott in simple terms is withdrawal from or restrictions imposed upon a target in commercial, financial, social and/or political sectors by way of expressing displeasure or protest over the behaviour of the target. The bottom line is the target must toe the line of the originator or hell would break out.

In geoeconomics, boycott as a useful weapon to arm-twist the strong and punish the week is often resorted to. Underlying idea is, the originator sends a forceful message that it is just the beginning similar to iceberg that progressively could turn out to me a major road block in the path of target’s progress. A geoeconomics boycott could be chosen from a wide spectrum beginning with an initial shock to a full-spectrum attack over geoeconomics architecture of the target. Put simply, originator intends to move either or both horizontally and vertically in the escalation ladder.

There are few finer points in boycott as geoeconomics strategy. Initially the announcement of boycott is intended to bring forth bad publicity for the target so that not only his relationship with the originator is in question but the message alerts third parties to be vary of their own existing relationship with the target.

Boycott as geoeconomics strategy can backfire too. It acts as a knife that cuts both ways. The sad truth is oftentimes boycott boomerangs on the originator whose fundamentals could be affected inadvertently. The boycott imposed by the West over Russia ended more economic hardship to the West rather than to Russia proper.

Sometimes boycott brings out unexpected windfall for the target. The Western boycott over Russian trade & travel made Russian resolve stiffer on one hand and to persuade her to seek alternatives in the Global South on the other. China and Global South made headway into the Russian market for their exports and imports of production and services.

Yet another issue that need to be weighed in before or during the pendency of the boycott is the counter punch the target could deliver back on the originator. It is sacrosanct for the target to go for the jugular vein of the originator. Mindful of the fact that America needs enriched uranium to operate nuclear power stations, Russia counter punched with a ban of the export of it to USA.

Recent Gaza hostilities came with a classic combination boycott system. The Muslim world is now united in imposing a well-thought of boycott programme intended to attack Corporate America that funds Israel. This goes in three parallel lines:

1.  Attack the American franchise system that distributes products in malls and dedicated stores such as Subway

2. American food & Beverage industry that licenses domestic firms to produce & distribute products such as Pepsi-Cola

3. Boycotting American brands and luxury items such as Timex in domestic market place.

Finally, it is geoeconomics stupid!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist