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Choke points : countries are turning economic infrastructure into political weapon, and that poses a major risk to business / Henry Farell, Abraham L. Newman

By: Series: Harvard Business Review. 98 : 1, pages 124-131 Publication details: January-February 2020Content type:
  • text
Media type:
  • unmediated
Carrier type:
  • volume
Subject(s): Summary: To conduct international commerce, businesses have built an intricate system of networks that move money, information, and components around the world. These networks may look decentralized, but all too frequently, they have major choke points. The majority of global finance transactions, for instance, are relayed through a single organization in Belgium. Many global tech firms depend heavily on the chips Qualcomm makes for Android devices. A huge proportion of global communications are routed through private servers on U.S. soil. Increasingly, these choke points are being turned into political weapons by governments, and companies are getting caught in the cross fire. The stakes are high: Firms can go out of business if they’re cut off from critical networks. They need to analyze their exposure and develop a strategy to protect themselves.
Item type: Articles
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To conduct international commerce, businesses have built an intricate system of networks that move money, information, and components around the world. These networks may look decentralized, but all too frequently, they have major choke points. The majority of global finance transactions, for instance, are relayed through a single organization in Belgium. Many global tech firms depend heavily on the chips Qualcomm makes for Android devices. A huge proportion of global communications are routed through private servers on U.S. soil. Increasingly, these choke points are being turned into political weapons by governments, and companies are getting caught in the cross fire. The stakes are high: Firms can go out of business if they’re cut off from critical networks. They need to analyze their exposure and develop a strategy to protect themselves.

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