The Impact of Geopolitical Crises on the Global Economy : the significance of specific trade routes during times of geopolitical crises

Abstract

This Thesis focuses on the impacts of geopolitical crises on the global economy by discussing two significant events: the Red Sea crisis and the Ukraine conflict. The purpose of this research is to address how disruptions of trade routes and the challenges that come with them affect supply chain stability and how the instabilities ripple through the global economy. A complete literature review with case studies was conducted to identify the implications of these crises on international trade. The research shows that geopolitical crises lead to increased operational costs, delays, and shortages of essential goods, increasing global inflationary pressures. The study concludes that developing alternative trade routes and enhanced risk management are critical for industries to remain operational during geopolitical crises.