Key Factors Influencing the Cost of Global Supply Chains Under Geopolitical Instability

( Vol-11,Issue-6,November - December 2025 )

Author(s): Yevhenii Shymchenko

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Page No: 150-157
DOI: 10.22161/ijaems.116.14

Keywords:

global supply chains, geopolitical instability, supply chain cost, domain risks, logistics, energy vulnerability, export operations.

Abstract:

The article presents a systematic analysis of the factors that drive cost escalation in global supply chains under conditions of geopolitical instability. The study is based on the structuring of key risk domains—energy, logistics, manufacturing, agri-food systems, and labor resources—and on examining their interdependent impact on overall expenditures. The mechanisms through which geopolitical events translate into higher costs are analyzed, including route disruptions, resource price fluctuations, increased production delays, and declines in export flows. Particular attention is given to the comparative vulnerability of countries and industries: the analysis identifies the specific response patterns of export-oriented economies, the extent of the impact generated by system-critical states, and the domain structure of industries where primary cost pressures originate. The findings show that the cost of global supply depends on the overlay of multiple layers of risk and is shaped by the degree to which economies are integrated into international flows and by the nature of interdomain linkages. It is concluded that cost management in unstable conditions requires a systemic approach that accounts for interactions among energy, logistics, and production factors, as well as the spatial structure of the global economy. The article will be useful for researchers of global supply chains, logistics professionals, operational risk analysts, and experts focused on the resilience of international production and logistics systems.

Received: 13 Nov 2025; Received in revised form: 10 Dec 2025; Accepted: 15 Dec 2025; Available online: 19 Dec 2025

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