THE RIPPLE EFFECT: ANALYZING THE INFLUENCE OF CURRENT GEOPOLITICAL CHALENGES ON NATIONAL ECONOMY (THE CASE OF RUSSIA)

Abstract

Current geopolitical shifts of tectonic scale generate a set of new challenges for global economic leaders all around the world testing their abilities to adjust fast enough to radically changing environment and finding the appropriate commercial solutions. Country’s global leadership refers to its ability to influence the global economy through its policies, trade agreements, and military power. Rising economic powers are challenging the dominance of traditional ones. Taking under consideration the fact that Russia nowadays is in the center of geopolitical tension with enormous number of various sanctions imposed on it and being actually forced to take a set of retaliatory measures, the authors focus on future prospects of the country’s commercial interaction with international counterparts on the basis of “BANI framework”, introduced by Jamais. The Russian case fits into it well. It is brittle in terms of existing economic links; anxious regarding the future prospects of country’s involvement into international economic transactions; nonlinear as there is a disconnection between cause and effect of all measures recently taken by the government and its opponents; and incomprehensible in terms of the future impact of existing situation to the world. The authors argue that current geopolitical tensions will inevitably change the entire sphere of international business in general, its geographical composition in particular. Active interaction with these or that international partners for the companies and their leaders all around the globe gradually seems to be more of strategic imperative, rather than an issue of willingness and choice.