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Conflicts, trade tensions, energy dependencies, data control, currency shifts… Major geopolitical issues do not affect states alone. In an increasingly globalized world, they can have very tangible consequences for businesses and their strategies.

At IÉSEG, the teaching of geopolitics equips students with the tools they need to understand these dynamics, anticipate risks and develop their critical thinking skills. For Syrine ISMAILI-BASTIEN, Professor of Geopolitics, the primary objective is to teach them to “understand that, by its very nature and definition, a business operates within a geopolitical environment, and to recognize the potential impact of that environment on its activities.”

Understanding geopolitics and its direct impact on business

Today, the term “geopolitics” is widely used to describe the international crises and tensions that regularly feature in the news. However, its meaning is more specific. “Geopolitics is the study of power rivalries and conflicts over a given territory. In other words, we analyze how geography shapes international politics and relations,” explains Syrine ISMAILI-BASTIEN.

Territory is central to this definition: the resources it contains, its geographical location, the routes that cross it and the interests associated with it can all help explain rivalries between different actors.

This perspective helps explain why geopolitics has an important place in business school curricula. Regardless of its size or sector, every business operates within a geopolitical environment. As a result, energy and raw material supplies, access to markets and the transportation of goods all depend on decisions made thousands of miles away. These decisions can have a direct and immediate impact on business operations, with consequences that may also extend over the longer term.

“It is geopolitics that enters the business world, not the other way around,” says Syrine ISMAILI-BASTIEN. Energy provides a concrete example. “Take a company that relies on oil supplies to keep its operations running. At first glance, it has no direct connection with the Strait of Hormuz. Yet its oil may come from a Gulf-producing country or pass through this strait, a major hub for global hydrocarbon trade. As a result, the ongoing conflict in the region, thousands of miles away, directly affects the company: prices soar, deliveries are delayed or even interrupted, and its operations are disrupted.”

Anticipating the risks and consequences of geopolitical developments

Beyond understanding geopolitical issues and the crises that arise, the aim is also to teach students how to anticipate their consequences. “Understanding is important, but taking action is even better,” Syrine points out. In class, students first acquire the fundamental concepts of geopolitics before applying them to real-life situations that businesses may face, drawing on actual geopolitical events. “I start with the broader context: history, politics, economics, government decisions and so on. Then we move on to the market and, finally, the company itself.”

Students are therefore encouraged to consider the risks to which a business may be exposed and how it can protect itself. They ultimately work towards developing a geopolitical risk strategy tailored to the company’s activities, size and markets. The course draws on geopolitical situation analyses, case studies and the examination of specific conflicts. “Very often, businesses react to events rather than taking preventive action. Yet every company should have a geopolitical risk strategy,” explains Syrine.

The situations studied are wide-ranging and may include armed conflicts, trade rivalries, energy geopolitics and changes in the international monetary system, such as the de-dollarisation of transactions. Students analyse the various actors involved, their motivations and interests, before examining the potential consequences for businesses.

“In a globalized world, no issue is too far away”

“Today, we can no longer say, ‘This has nothing to do with us; it is happening far away from us.’ That is simply not the case anymore,” says Syrine ISMAILI-BASTIEN. She wants her students to understand that businesses can no longer regard events taking place abroad as distant developments with no bearing on their activities.

The consequences of Russia’s invasion of Ukraine provide another example: the repercussions of a conflict can spread far beyond the territories directly involved. Similarly, a company may depend on suppliers, raw materials, data, energy or skills located in different countries.

“Today, no company can operate without relying on something from abroad. If it is not energy coming from elsewhere, it may be raw materials, design, labour or anything related to data protection. We could say that all products are now ‘Made in the World!’”

To help students grasp this reality, Syrine uses practical examples, such as the Porsche Cayenne. “I like using this example. When I ask students what nationality the Porsche Cayenne is, they all answer, ‘German’. Of course, the brand originates in Germany, but most of the raw materials and components used to manufacture the car are not German, and final assembly takes place abroad. It is therefore ‘Made in the World’.”

This interdependence means that future managers must look beyond individual markets or companies and understand the different countries and territories with which businesses are connected.

Developing critical thinking through a broader perspective

Syrine encourages her students to take a step back from political rhetoric and examine the interests underlying government decisions. “I teach students to identify the real motivations behind the actions of a state or country,” she explains.

This approach involves comparing official statements with facts and analysing the various interests at stake: control over resources, energy, trade routes, territories and broader economic considerations.

At an international school such as IÉSEG, this approach can take on an additional dimension. Students come from different countries and may therefore be encouraged to question their own assumptions and perspectives. The objective is not to promote a single interpretation of international relations, but rather to equip students with the tools to analyse complex situations and consider different points of view.

Syrine ISMAILI-BASTIEN aims to provide students with objective analytical tools to understand international conflicts, including the most sensitive ones. While religious, historical and cultural dimensions are essential to understanding their complexity, she encourages students not to lose sight of their political and legal aspects and to remain as objective as possible. “I regularly remind them that we live in a world that is supposed to be civilized and governed by law. At the end of the Second World War, institutions were established, notably the United Nations, whose Charter includes numerous conventions designed to regulate relations between countries. So, when discussing conflicts and sensitive issues, I encourage them to look at what international law actually says.”

Understanding the world to act better

Understanding the relationships between territories, states, businesses and markets enables students and future managers to gain a better understanding of the environment in which they will work, particularly within businesses. “The more we get to know others, the less we fear them. The more we collaborate, the fewer conflicts there are,” Syrine emphasises.

Her words serve as a reminder that studying geopolitics is not just about preparing students to manage uncertainty in the business world. It also helps shape professionals who can take a step back, understand the complexity of the world around them and make informed, considered decisions.