Responding to Global Trade Barriers in Turbulent Trade Environments: A Dynamic Framework for Firms Under Pressure

Abstract

There is turbulence in the global trading environment due to many new trade restrictions enacted in the G20 nations from 2018-2024: over 14,000 new restrictions. In addition to more than 14,000 restrictions on trade being created in the G20 economies there are also many countries implementing restrictions on global merchandise trade. Dynamic response capability to respond to trade barriers is required because firms that depend on static compliance to respond to trade barriers are unable to provide the dynamic capability necessary to respond/respond quickly to changes in the global marketplace. The authors of this article will utilize analysis of WTO monitoring data, IMF trade analysis, and strategic theoretical analysis to provide some of the organizational capabilities, tools, and conditions required to build this type of dynamic response capability. A barrier response matrix and six archetypes of modern corporate responses are developed/illustrated to help with practical operational implementation of this dynamic response capability.