12 Essential Questions that Address Globalization Risks in 2025

The current wave of globalization is facing unprecedented challenges—driven by geopolitical rivalries, fragile supply chains, and shifting political landscapes. As companies navigate this evolving terrain, it’s clear: globalization must be rethought. This article explored the key questions every CTO and tech leader must grapple with as we approach 2025. 

In an era marked by heightened geopolitical tensions, disrupted supply chains, and rising nationalism, the dynamics of globalization have entered a new chapter. As the global trade environment becomes increasingly unpredictable, companies must adapt, but the stakes are high. These shifts signal more than just operational risk—they represent strategic crossroads that will shape how companies compete, innovate, and ultimately thrive in a rapidly changing world. 

The global economy has long been driven by the interconnectedness brought on by trade, technology, and capital flow. Yet, cracks are beginning to show in this model. The uneven distribution of globalization’s benefits has deepened inequalities within and between countries. Workers in industrialized nations, particularly those in labor-intensive industries, have seen stagnant wages and diminished prospects since the 2008 global financial crisis. Conversely, highly skilled workers, particularly in developed countries, have reaped considerable benefits. As businesses face the complexity of managing these tensions, the need for rethinking the global framework has never been clearer. 

The end of the global dream? 

The benefits of globalization are undeniable—broad access to markets, cheaper goods, and an unprecedented flow of ideas and capital. Yet, the cracks in the system are starting to show. Geopolitical rivalries, protectionist policies, and the fallout from the COVID-19 pandemic have exposed vulnerabilities that could reshape the future of global trade. As these forces play out, businesses are forced to grapple with an evolving, unpredictable global landscape. 

Globalization has often been a tale of winners and losers. For many in the developed world, it’s brought prosperity. For others, especially in the global south, the promises of shared growth have often remained out of reach. The next chapter of globalization will not only affect businesses at the macroeconomic level but will have a direct impact on individual industries, workers, and consumers. 

The questions that arise today demand urgent answers—from reevaluating supply chains to rethinking the very foundation of global trade. 

1. How are leaders navigating geopolitical tensions? 

The rise of nationalism and geopolitical friction between powers like the U.S. and China has forced many businesses to rethink long-standing supply chain models. With political uncertainty on the rise, particularly in regions like the Indo-Pacific, corporations must prepare for new risks: tariffs, sanctions, and trade barriers that threaten the flow of goods. 

It’s no longer enough to rely on a single supply chain or market. CTOs must diversify, find new regional sources and adopt strategies to mitigate political and economic volatility. 

2. What role will technology play in the future of global trade? 

Technological advances remain central to globalization, but they also expose new risks. The digital divide between advanced and developing nations continues to widen, with technological access becoming a major determinant of economic success. As the world becomes increasingly digital, the ability to harness new technologies will determine whether businesses thrive or falter. 

The future of global trade will depend on the ability of companies to use technology not only to scale operations but also to foster digital inclusivity and adapt to a world of ever-accelerating change. 

3. Can leaders address the inequality globalization has created? 

While globalization has lifted millions from poverty, it has also exacerbated income inequality, particularly in wealthy nations. In the U.S. and Europe, low-wage workers have seen their prospects shrink, while the benefits of globalization have largely accrued to the tech elite and high-skill workers. 

A more inclusive approach to globalization is essential. Businesses will need to rethink labor models, invest in skills training, and recalibrate supply chains to ensure that the benefits of global trade are more equitably distributed. 

4. Is hyper globalization over? 

The free-flowing trade that characterized the late 20th and early 21st centuries is no longer a given. Trade tensions, the rise of protectionism, and the strategic importance of “onshoring” are all contributing to a world where the era of hyper globalization appears to be winding down. 

 The future of business will lie in agility—companies must prepare for a fragmented trade system that may require more localized, adaptive models. 

5. What will the future of global finance look like? 

Global finance, once an engine of interconnectedness, is increasingly a source of instability. The 2008 financial crisis demonstrated the risks of unregulated capital flows, and emerging markets have frequently been left vulnerable to sudden financial shocks. Going forward, businesses will have to reckon with a more regulated and less predictable financial environment. 

CFOs and tech leaders must adopt new risk management strategies, including diversified capital sources and hedging against financial volatility, to protect their operations from global economic uncertainty. 

6. How will sustainability shape global trade? 

As climate change accelerates, sustainability is no longer a choice—it’s a requirement. Companies are under increasing pressure to adopt environmentally responsible practices, not just for compliance but also to meet growing consumer expectations. At the same time, the green economy presents new opportunities for growth, especially in tech and clean energy sectors. 

 Sustainability will no longer be a fringe concern but central to corporate strategy. Businesses must integrate environmental responsibility into their global supply chains and adapt to changing regulatory environments. 

7. Can multilateral trade systems survive? 

The multilateral trade system, championed by institutions like the World Trade Organization (WTO), is under strain. As countries increasingly pursue bilateral or regional trade agreements, the old order is giving way to a patchwork system of deals that could leave global businesses scrambling to navigate competing regulations. 

The future of business will depend on adaptability. Companies will need to stay informed about the rapidly evolving global trade environment and develop the flexibility to navigate complex and often contradictory trade agreements. 

8. Is intellectual property protection still a viable strategy? 

Intellectual property (IP) rights were once a central pillar of global trade, but they are now a flashpoint for dispute. The unequal distribution of IP, particularly in tech, has become a source of tension, with developing countries accusing developed nations of hoarding innovation. 

Companies must strike a balance between protecting intellectual property and promoting global innovation. Open-source initiatives and collaborative partnerships could play an increasing role in driving progress while mitigating tensions over IP. 

9. Can global tax reform create a fairer system? 

The global tax system has long favored multinational corporations, but increasing pressure from governments to close loopholes and tackle tax avoidance could reshape the landscape. The introduction of a global minimum tax and stricter enforcement could shift the balance of power and force companies to rethink their tax strategies. 

It’s critical for businesses to stay ahead of tax reform efforts. Tax compliance will become more complex, and firms will need to adopt transparent, regionally nuanced strategies to meet new global standards. 

10. What does the rise of regionalism mean for global business? 

Regionalism, spurred by shifting global power dynamics, is creating a more fragmented world. Trade blocs are growing stronger as countries seek to reduce reliance on distant markets. For companies, this means new rules, new alliances, and new challenges. 

Regionalism may present both opportunities and risks. By focusing on developing strong relationships within key trade regions, companies can better navigate the challenges of a more divided global economy. 

11. How will leaders manage financial crises in an interconnected world? 

The interconnectedness of global financial markets means that crises spread faster than ever. As countries grapple with inflation, debt crises, and market instability, businesses must develop contingency plans that account for systemic risks in a globalized economy. 

Corporate leaders should adopt proactive financial strategies that include robust risk management practices, scenario planning, and crisis communication protocols to prepare for the inevitable financial shocks that lie ahead. 

12. How will consumer behavior change in a fragmented world? 

As the world grows more polarized, consumer behavior is becoming more localized. E-commerce has opened new markets, but consumer preferences are increasingly shaped by regional values, concerns about sustainability, and national economic conditions. 

Understanding these shifts will be crucial for businesses. Firms will need to develop personalized approaches to marketing, sales, and customer service, tailoring their strategies to the diverse preferences of consumers across regions. 

In brief 

Globalization is far from over—but its future is far from certain. The world is at a crossroads, and the path forward will depend on how businesses adapt to a complex, fragmented, and increasingly unpredictable global environment. To survive and thrive, companies must be nimble, resilient, and forward-thinking.