Reply to the discussion response below.

Geopolitical issues can significantly affect various sectors of the global economy. These issues can cause a disturbance in the flow of goods and services from one country to another to how investors behave. An example from above regarding the US and China's trade war could be seen as a massive issue for Americans. The US has placed tariffs on Chinese goods which has caused imported products from China to become more expensive. China has also countered the US with their own tariffs on US exports which have caused a decline in the agriculture sector of the US economy. The US has heavily relied on trade with China over the past two decades since China joined the World Trade Organization in 2001 (Siripurapu & Berman, 2022). China is one of the largest export markets for US goods and services, and the US is one of the top export markets for China (Siripurapu & Berman, 2022). President Biden has maintained tariffs on Chinese goods and introduced new trade restrictions with China in order to reshape the bilateral relationship (Siripurapu & Berman, 2022). When you begin to add in the current wars being fought overseas with Russia and Ukraine or Israel and Hamas you begin to see where these tensions hurt the global supply chain.