Post by University of St.Gallen

🚢 The fragility of the global trading system Recent study demonstrates the effect closures to major global maritime waterways like the Suez and Panama canals would have on global trade. An interview with HSG Professor Ferdinand Rauch. "Closure to the Panama Canal would cause the largest drop in global trade, reducing it by nearly 3%", Rauch explains. "Closure of the Suez Canal reduces global trade by 2.5% and closure of the Strait of Malacca would reduce global trade by 1.7%." 💡 What can we do? "Moving forward, companies must weigh resilience just as heavily as efficiency. Diversification and strategic inventory storage remain vital tools, as does the regular evaluation of alternative suppliers, transport routes, and backup markets", Rauch says. "Ultimately, geopolitical and global risks must be central to everyday business decision-making." ➡️ Read more: https://lnkd.in/eqRThPjG SIAW-HSG | Universität St. Gallen | School of Economics and Political Science (SEPS-HSG) - Universität St.Gallen