International trade is more than a backdrop to business in today’s hyper-connected world—it’s a defining force. For C-suite executives and business strategists, the intricacies of trade agreements, tariffs, and global regulations demand more than surface-level awareness. They require a nuanced understanding of how shifting policies and geopolitical tensions can influence everything from supply chains to long-term strategic planning.
Jonas Gamso, deputy dean of knowledge enterprise and associate professor at Thunderbird School of Global Management at Arizona State University, shared some ways business management and strategy are impacted by international trade.
“I liken them to ‘rules of the road’," Gamso said. “When you drive on a highway, you can adjust your speed, change lanes, or pull over, but you cannot make a U-turn. Similarly, trade agreements set parameters within which companies can operate flexibly, while prohibiting certain moves altogether."
He said these rules influence business strategy in at least three ways:
“To prepare leaders, I encourage a political economy perspective," Gamso said. “Trade agreements govern economic exchange, but they are inherently political, shaped by domestic politics and geopolitical strategy. Without understanding the underlying political drivers, it becomes difficult to forecast changes or build resilient long-term plans."
Executive education today emphasizes risk diversification, including supply chain flexibility and geopolitical scenario analysis. Tools such as AI-powered supply chain visibility platforms and partnerships with global advisors are also gaining traction.
Gamso said he often teaches a framework that offers companies four strategic options for responding to risk:
“I also encourage developing contingency plans so that companies can pivot quickly as the global landscape evolves."
“My advice is straightforward: local regulations are obligatory, while global standards are aspirational. Firms must comply fully with local rules, unless doing so would violate home-country laws," Gamso said. “At the same time, companies can exercise flexibility in how they adopt and prioritize global standards."
This requires a flexible compliance infrastructure, as well as cultural fluency—another growing priority in executive leadership programs. Gamso also recommends robust stakeholder mapping.
“Executives should identify which standards matter most to their customers, investors, supply chain partners, employees, and communities, and focus their global standardization efforts accordingly," he said.
“My colleagues and I have always emphasized that global business cannot be fully understood or successfully navigated without an appreciation of international politics and world cultures," Gamso said. “This is especially true today, with the return of great power politics, political change happening in many countries, and the elevation of nationalism. Within this context, 21st century leaders must be able to manage political risks and negotiate across cultural contexts."
Gamso said Thunderbird focuses on the global needs of the business manager.
“In broad terms, we offer a multidisciplinary curriculum drawing from political science, sociology, and business strategy," he said. “More specifically, my classes often focus on identifying political risks, going beyond headlines to understand the underlying institutional factors that make risk incidents likely."
“Risk management will be incredibly important for leaders in the current environment," Gamso said. “There is so much uncertainty, stemming from rising nationalism and protectionism, shifting political norms, and rising great power politics, that we cannot just assume that globalization will continue on the trajectory that it has been on since the end of the Cold War."
He said that a fundamental understanding of technology and technological change will be essential.
“Technological innovation and disruption is advancing rapidly and those who fail to adapt risk being left behind," he said. “Change can be difficult, but it is essential, and change management techniques will be important to helping organizations and employees succeed in this new and evolving landscape."
First Published: Jul 24, 2025, 11:44
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