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When Geopolitics and Business Collide

undefined and Stratfor Global Security Analyst at RANE
Ben West
Stratfor Global Security Analyst at RANE, Stratfor

Dec 4, 2018 | 10:00 GMT

Settlers sit in a shack north of the Palestinian village of al-Mughayyir near the Israeli settlement of Shilo in the occupied West Bank on Nov. 20, 2018.

Settlers sit in a shack north of the Palestinian village of al-Mughayyir near the Israeli settlement of Shilo in the occupied West Bank on Nov. 20, 2018. Human Rights Watch has urged Booking.com to follow the example of Airbnb and withdraw listings for rentals located in settlements in the Israeli-occupied West Bank. Airbnb said it would remove such listings, just ahead of the release of a critical report from the group.

(MENAHEM KAHANA/AFP/Getty Images)

Highlights

  • Businesses tend to feel geopolitical tensions more acutely in areas of territorial dispute. 
  • China has used leverage over market access to force companies to effectively recognize Taiwan as its territory, even if they would prefer to avoid taking sides.
  • Given that territorial disputes around the world force companies into awkward foreign policy conflicts, companies would be wise to understand the nature of such geopolitical disagreements.

From Israel to China to Spain, companies are becoming increasingly embroiled in foreign policy disputes in the countries in which they operate. Territorial squabbles and ambiguous legal statuses are turning business decisions into foreign policy positions whether those companies like it or not. From Airbnb listings to maps of China, those decisions can create security and continuity concerns for companies caught in the middle. In response to these challenges, corporations need to gain a greater understanding of the disagreements so they can anticipate and head off any disruption to operations....

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