The short answer is that countries regardless of maturity are interconnected and depend on the broader economy and other countries from an infrastructure, supply chain and healthcare delivery to name a few. Localization, sustainability and resiliency are typically country driven but there’s global dependencies as well.
In the context of global market, the national economy of developing countries can be affected by geopolitical events in terms of development finance,debt crisis,trade imbalance and inflation.
Geo-political economy influences a developing country's national economy by shaping trade policies, foreign investment, and access to global markets. Political stability, alliances, and conflicts impact investor confidence, resource allocation, and integration into the global supply chain, which are critical for economic growth and resilience.
Geo-political economy significantly affects the national economies of developing countries within the global market. The intersection of politics, geography, and economic power shapes global trade, investment, and economic policies.
Global Trade & Investment: Political relationships influence trade agreements, market access, and investment flows. Political instability or disputes can disrupt trade and deter foreign investment.
Currency & Loans: Political instability can lead to currency fluctuations and affect borrowing costs. Developing nations may face higher debt burdens due to geopolitical risks, while stable nations often attract favorable loan terms.
Natural Resources & Energy: Developing countries reliant on natural resources are vulnerable to global price shifts and energy security issues caused by geopolitical tensions.
Globalization & Migration: While globalization offers growth, it also exposes developing nations to the economic interests of larger powers. Migration influenced by geo-political factors can impact labor markets and remittances.
Environmental Impact: Geo-political decisions on environmental policies can make developing countries more vulnerable to climate change and natural disasters, further disrupting their economies.
In conclusion, geo-political factors shape the economic outcomes of developing nations, influencing trade, investment, currency, and overall growth. Navigating these forces is key to ensuring sustainable development.
Developing economy do not have competative edge. It lacks innovations, lacks market analysis, weak bargaining power,lab analysis of the product with assurance, quality and expertise. Therefore if the geopolitics allowed to penitrate in the market could not penitrate. In this condition geopolitics play a role to secure their market and market security.
geopolitical factors create instability, market volatility, reduced investment, disrupted supply chains, and impose economic sanctions, all of which significantly impact the overall national economy of developing countries.