Summary of Geo-Economics

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Geo-Economics summary
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The World Economic Forum, in this enlightening tour of a fast-changing world, says globalization is ceding dominance to “geo-economics,” an environment in which world leaders use economic weapons to settle international disputes, powerful nations squeeze out periphery countries, and governments intervene in markets. These are among the seven challenges recalibrating the world’s economic mind-set toward a multipolar range of diverging interests. getAbstract recommends this far-reaching report on global trends to investors, executives and futurists.

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After the Great Recession, “geo-economics” usurped globalization as the dominant force in world affairs. Recent conflicts among the world’s powers – such as that pitting the West against Russia over Ukraine – have deployed economic weapons such as sanctions, trade alliances and currency manipulation. China, the United States and the European Union will be the likely victors, while global businesses and institutions may founder, caught in “a multipolar, regionalized power dynamic.” Seven challenges arise in this new environment:

  1. “Economic warfare” – Nations are turning to economic penalties in place of conventional war. But sanctions...

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