IMPACT OF GLOBAL CONFLICTS AND POWER DYNAMICS ON TRADE AND COMMODITIES

Abstract

The paper "Impact of Global Conflicts and Power Dynamics on Trade andCommodities" examines the transformative effects of geopolitical tensions andglobal power shifts on international trade and commodity flows. It argues that longstandingsupply chain models and traditional management practices are beingupended by rapidly evolving global conditions — including conflicts such as thewar in Ukraine and regional instabilities— - that are disrupting established traderoutes and forcing industry to seek alternative sources of raw materials. The authorsexamine the evolution from Industry 4.0 to Industry 5.0, emphasizing theintegration of digitalization, intelligent automation and improved human–machinecollaboration to create more resilient and flexible production systems. The studyhighlights that the depletion of domestic resources in developed countries,combined with increasing reliance on distant supply chains, has increasedvulnerability to geopolitical and economic shocks. In response, companies areurged to adopt flexible, digitally integrated management systems that enable realtimemonitoring and adaptive decision-making. The paper proposes strategicmeasures such as the use of advanced logistics information systems, intelligentrobotics, sustainable and circular economy practices, and modular organizationalstructures that can be reconfigured to mitigate risk. It also emphasizes theimportance of investing in human capital and promoting global connectivity toensure continuous and efficient flows of goods in the face of ongoing internationalchallenges