A Global trade in a VUCA context: A multilevel approach

Abstract

The exchange of products allows countries to maximize the use of their resources and support their competitive position in global markets. However, such activities usually involve volatility, uncertainty, complexity, and ambiguity (VUCA). This challenging context has been termed VUCA to describe the reality of the business landscape. Moreover, current events like the Coronavirus disease (COVID-19) pandemic and the political issues between Russia and Ukraine increase the apprehension levels of trade dynamics. This study provides a multilevel approach to macro, meso, and micro interdependencies in response to this complicated context. To accomplish this objective, the research employed a conceptual review by focusing on business as complex adapting systems (CAS) while embracing the significance of the trade facilitation pillars, suggested by UNCTAD, as a fundamental strategy to overcome current challenges. The review concludes on the significance of developing strategies in an interconnected world despite vulnerability. From an academic perspective, the study provides a conceptual framework to analyze global trade dynamics in a VUCA context. More specifically, it explores the importance of implementing and reinforcing different perspectives to facilitate trade to manage environmental conditions vis-à-vis firms' current demands, leading to interconnected strategies.