For years, major tech companies built their success on a global system that allowed them to operate almost anywhere. They used cheap labor, low taxes, and light regulations to cut costs and boost profits. This strategy is known as global arbitrage.
Companies like Apple and Nvidia benefited greatly from this model. Nvidia, which pioneered graphics processing units and now dominates hardware and software used in artificial intelligence, grew by selling freely across global markets.
But now, that model is breaking down. Geopolitics is taking over, forcing companies to rethink how they do business.
How Geopolitics Is Reshaping the Global Economy
The global economy is becoming more divided. Governments now use tariffs, trade rules, and sanctions to control who can sell what and where. The United States has placed strict export controls on advanced technology, especially semiconductors, limiting sales to China and other countries.
These policies have
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