"Geopolitics and the Global Economy" was the hot topic closing out day two of The IIA's 2019 International Conference in Anaheim, Calif. Peter Zeihan, a geopolitical strategist who specializes in global energy, demographics, and security, laid out the history of U.S. foreign policy and gave an overview of trade relations since the end of World War II.
"We are in the midst of a great transition," Zeihan explains. "We are looking at the end of our economic model."
With supply chains facing disruptions from these geopolitical risks, especially the U.S.-led trade wars, internal auditors should pay attention. Zeihan says countries that have seen this coming and have worked to diversify their supply chains and into more concentrated zones near points of consumption are definitely at an advantage.
"What you're looking for is a place where inputs, production, and consumption are both secure and hopefully co-located," he warns. "Right now, the only place that happens en masse is in North America."
Zeihan offered this assessment of today's post-order American foreign policy: "If you want something that's positive, you need to bring something to trade."