The impact of geopolitical tensions on global supply chains and international trade

Abstract

The aim of the study is to identify the key factors affecting the economic sustainability of these countries in the face of external political challenges. The methodology includes a comparative analysis of the impact of the geopolitical situation on logistics and trade in each country, taking into account their geographical, economic and political characteristics. The comparative analysis of Kosovo, Belgium, and Azerbaijan highlights a broader pattern: economic stability and resilience to geopolitical risks are not only determined by geographical or political factors, but also depend to a large extent on a country’s ability to adapt to changes in the international environment. Strengthening domestic infrastructure, expanding economic ties, and active participation in international organisations are crucial strategies to increase a country’s resilience. This study contributes to the understanding of how different countries respond to geopolitical challenges. Azerbaijan, Belgium, and Kosovo, located in different parts of the world, are affected by the same geopolitical crises. Sanctions against Russia and Iran, as well as Brexit, disrupt logistics routes and slow down transport, which has a direct impact on the budget. In this context, the countries’ main focus is on finding positive aspects that could stabilise the crisis – finding new export and import routes, as well as finding partners. Azerbaijan and Kosovo focused on cooperation with the European Union (EU) rather than with Russia and Iran. Belgium, which suffered the most from Brexit, is focusing on other EU countries, establishing trade with them.