Transportation and Logistics Management: Emerging Challenges and Solutions

Abstract

The text is devoted to the actual topic of challenges in the modern market of logistics operations. Currently, several challenges are being considered in the global market, which form offers in cargo transportation. A key place among them is occupied by COVID-19 and the consequences of the pandemic, which have entirely changed transportation. COVID-19 has complicated the work of logistics companies, forcing the dismissal of several specialists, and now the health of key personnel in this area is the most critical factor in the company’s work. Another challenge for logistics operations is the environmental damage caused by non-electric transport. Companies must adopt new sustainability programs that express their ecological responsibility.

An important challenge is the growing political tension, sanctions, and pressure on transportation from one country to another. This problem is especially relevant at the moment, and this can be seen only by opening the first newspaper. The latest challenge discussed in this text is the growth of technology and the need for companies to keep up with this rapid growth. Refusing to use technology is fraught with a quick loss in the market, as the most developed companies cope with customer service faster.

The text proposes various solutions to help meet challenges head-on and avoid high risks. These solutions include changing the structure of the supply chain, ridding companies of rigid operating modes, and a new assessment of adaptive skills. In the modern world, diversification will be helpful, allowing companies to distribute investments in different territories so as not to suffer huge losses. Experts recommend that companies focus on environmental values ​​and the promotion of stability programs, as well as the introduction of information technology, block chain, and artificial intelligence.

Introduction

• Current Problem:
  • Modern logistics operations are subject to various risks, and managers in this area face new challenges every year. Modern logistics is under a severe blow from COVID-19, although the pandemic has weakened and intensified several times. COVID-19 has brought many changes for retailers and logisticians in their daily work associated with innovative safety technology, regulations, and uncertainty about tomorrow. Political tensions in the world have become another challenge for logisticians: bans, sanctions, and new rules for imports interfere with supply chains and dictate harsh conditions for their development. The current global community is very concerned about the problems of climate change, so logisticians should be aware of this growing tension. When choosing a service or goods for people and large companies, it becomes more and more important how the owner and seller relate to the environmental situation. The attitude should not be casual, as customers usually consider such sellers very irresponsible. Technology invades the supply chain as time advances, helping managers connect with customers and improve service. Thus, COVID-19, geopolitical tensions, climate change, and the growing influence of information technology are the critical challenges of our time in logistics.
• Importance of the study:
  • The conducted research is the key to being competitive in the vast economic market in today’s harsh environment. The requirements for entering this game are increasing year after year. What seemed optional five years ago can quickly become a reason why a business will be denied opening. The offer in today’s market is a vibrant series of diverse companies that can meet any expectations regarding price, delivery, and customer service. Logistics companies must fit into this diversity, satisfying the growing demand.

The most critical challenges shaping the US transportation and logistics industry in 2022 include navigating the COVID-19 environment, managing the impact of geopolitics on the supply chains, achieving sustainability, and integrating emerging technologies to achieve competitive advantages.

• Scope and target market:
  • Area covered: North America.
  • Target Market: Academic audience and business professionals.

Background information

• Industry definition:
  • Encompasses outbound and inbound transportation management, material handling, warehousing, fleet management, inventory management, order fulfilment, supply and demand, planning, logistics network design, third-party logistics management, and other supportive services.
• Size of global operations:
  • Statista places the global logistics market at $8.6 trillion (Mazareanu, 2021).
  • The Allied Market Research projects the market to grow to 13 trillion by 2027 from 2017 with a compound annual growth rate (CAGR) of 6.5% (Hamare, Jawarkar, & Mutreja, 2022).
• The US market:
  • The largest single market in the world ($1.6 trillion) and accounted for 8% of the 2018 gross domestic product (GDP) (Select USA, 2022).
• Highly Integrated Market:
  • Apple Inc. employs components from 200 suppliers in 43 nations (Twinn et al., 2020).
• Research Gap:
  • The research on contemporary topics may be inadequate, as the economic and political situation is rapidly changing. For theoretical research, time is needed to collect and analyze information. However, the original data is often subject to change, which makes actual work with them difficult. The collected information may be relevant only for a short period. Among the four selected topics, the pandemic realities and the geopolitical situation are the most rapidly changing. This study considers the current military-geopolitical situation caused by the Ukrainian-Russian conflict and the following sanctions. This painstaking attitude to collecting only up-to-date information exposes the investigation to additional risks due to changing external circumstances.
  • This study is obliged to provide several solutions to the issues under discussion, but their inadequacy is for the reasons mentioned earlier. Developing algorithms and solutions to problems require careful and lengthy analysis, taking into account other risks that arise in parallel. Unfortunately, it is impossible to know whether the described solutions will work in the realities of modern business. The environment in which modern business and logistics, in particular, is subject to influence from different sides.

Literature Review

Major challenge A: the restrictive covid-19 environment

Minor Point A

With the advent of the pandemic, many governments and private companies have made the tough decision to introduce many rules. These rules included restrictions on the number of cars, exceptional attention to drivers, hygiene precautions, and many others. Many of these rules hurt the delivery process, mainly affecting speed. Speed disruptions have become a huge problem for many customers as they expect ever-faster deliveries every year (no more than three days).

1. It seems that international trade and shipping suffered mainly from this problem. However, local governments also dictate the rules, which may even contradict themselves in places (Twinn et al., 2020). Domestic shipments have been hit hard, regardless of whether the product was produced abroad or in the country (Gereffi, 2020). The supply of goods that many people need in a lifetime has been hit hard. These are products highly integrated into the daily use of many people.
2. At the same time, international trade and logistics are the responsibility of many fears and global companies. International logistics has faced severe uncertainty, leading to a lack of forecasts and expectations for this area (Hassani & Shahwali, 2020). Given this uncertainty, many customers have become distrustful of international trade processes, as they did not know how long the product would take and in what condition it would reach their door.
3. Against big problems with the rules and the speed of deliveries, transportation could not recover under oppression. At the time of 2020, the whole system looked in such a way that it seemed that recovery was impossible in the next few years (McKinsey & Company, 2020). It significantly impacted all suppliers in the chain, who did not understand what better decision to make and who to rely on in a difficult situation. Physical restrictions have generally called into question the development of transportation. The number of goods (measured in tens and units) that could previously be delivered using advanced modern logistics has dropped sharply.

Minor Point B

Lack of understanding of the future and sometimes even the present has forced suppliers to reduce production size. Pre-pandemic supply chains got used to the strain they couldn’t get in 2020, and disruptions have occurred. Buyers looked for new suppliers or refused to supply to develop other business areas (Daher & Crowley, 2021). Demand, however, did not decrease but turned into a giant soap bubble that was about to burst.

Solution:

1. Hygienic safety measures may seem unfair, but this does not mean they should be ignored. Most governments and companies have left the security situation at bay, giving them no choice whether or not to use protection; key workers must use all the safeguards provided (IMF, 2020). These may include gloves, masks, and sometimes even protective suits. The inconvenience caused should be compensated by exiting a protracted pandemic.
2. Employees and managers must be flexible and ready to deal with rapidly changing circumstances at work. Adaptability will be a massive advantage for essential managers and workers who usually do not have in-depth training and specialized education. Perhaps more frequent briefings and brainstorming should be held to improve adaptive skills. By sharing opinions, employees will understand what is happening around them and be more courageous in making decisions.
3. With the advent of the pandemic, new regulations have entered the work of logisticians. They were strict and sometimes incomprehensible; they disrupted the work of the enterprise, invading the already tuned mood and interfering with high-speed deliveries. Failure to comply with these requirements became a big problem, as they were inconvenient and unusual. For careful compliance with the requirements, it is necessary to strictly notify all employees of the importance of regulatory regulations and possible consequences; specialized networks and information technologies will help in this.

Major challenge B: shifts towards sustainability

Minor Point A

The global agenda has changed a lot in recent years, and environmental issues are increasingly being raised both in political strife and public. It can be unambiguously concluded that society has become the most interested in the problem of the environment; and it could not but be reflected in consumption issues. COVID-19 has shown that humanity can shift to the most conscious and thoughtful consumption, as complicated supplies have made people understand that getting what they want can sometimes be very difficult. However, what has become important is how many companies have the same caring attitude as consumers. Consumers now prefer products and services from companies that don’t hesitate to voice their environmental concerns.

1. The Paris Agreement of 2015 has become the reference document for international cooperation and relations in general. This agreement underlies the conclusion of the most relevant documents, considering the changing situation from year to year. The most developed countries of the world that are ready to invest in environmental protection, as well as successful companies interested in promoting their products worldwide, take part in creating these documents.
2. If possible, the United States regulates environmental issues at the federal level, thanks to new bills being approved. Local governments take a severe part in protecting the environment, making amendments and recommendations to already fully approved documents and laws. Since the states have a certain degree of autonomy (which is regulated, as the recent abortion approval news may show), their interests may differ. Each state has unique environmental recommendations and prohibitions depending on the specific climate, infrastructure, and degree of involvement in agriculture.
3. US environmental policy, however, cannot be controversial; and there are several goals that the country will try to achieve in the next five to ten years. For example, the US climate change target is to decrease greenhouse gas emissions by 50-52% below the 2005 levels by 2030 (Plumer & Popovich, 2021). These goals should not overlap with manufacturing and logistics operations, but strict environmental restrictions may still affect the industry.

Minor Point B

The psychology of consumerism is fundamentally changing under the influence of environmental trends. People sincerely consider eco-friendly brands essential and tend to buy their products. If a product or service is overpriced, usually through social media, these brands can get approval and support through comments. Environmental protection can be associated with different associations among people, but the most prominent is the sense of responsibility attached to environmentally friendly brands.

1. The success of eco-friendly brands is due not only to their perceived responsibility for production but also to the fact that people do not want harm. Consumers do not want to harm others, but they do not want to hurt themselves, which is obvious. Environmentally conscious brands involve creating products (clothes, appliances, accessories, jewelry) outside the logic of using life for the benefit of people. Consumers like it because they do not feel guilty or ashamed and thus do not associate themselves with negative roles.
2. Businesses that do not want to keep up with the environmental agenda are severely punished by partners and governments in whose territories the enterprises are located. Caring for the environment is not just a trend of youth or society. This trend responsibly actualizes the US government and other countries, especially when it comes to EU countries. Only punishments can tell business owners that it is time to move to new production systems that will be safe for the environment. The careful concern for the environment and the strict bans demonstrate an exciting phenomenon of consumer society. A civilized consumer society is more interested in long-term consumption than diversity, extremity, and brightness. It leads precisely to the prohibition of enterprises that, with their offers on the market, reduce the years of consumption available to humankind.

Solution:

1. The values of corporate social responsibility will be perfect helpers on the way to creating an environmental service. Logistics operations can be environmentally friendly, which lies above all in machines and drivers. Congested traffic is terrible not only for customers waiting for their goods but also for the air. Logistics companies can also adopt sustainability and sustainability programs focusing on sustainable supply and consumption.
2. Triple bottom line reporting is a great way to move the ecology realm into highly visible accounting. Due to triple bottom line reporting, many specialists will be able to take into account the problem of ecology along with finance, the area that most managers usually focus on in logistics. Triple bottom line reporting allows employees to see how a business affects the surrounding people and nature in a ternary matrix (profit, people, planet). The results obtained are easy to analyze and, following them, to build further strategies for work.

People rightly consider transportation and logistics one of the most environmentally unsafe areas. That is why companies have suffered from bitter criticism for half a decade. Another life-saving solution for logistics operations could be using electric and hydrogen transport. Initially, such vehicles will require significant cash injections, but with the creation of new copies, the situation will no longer be difficult for company owners. In addition, there is a danger that cars will require retraining from drivers, and this is another money injection and time cost. All these developments require time, research, and investment, but the result will pay off in the future.

Major challenge C: evolving geopolitics and economic decoupling of threats

Minor Point A

Political conflicts have a direct impact on transportation and logistics in general. Usually, such conflicts lead to sanctions and various bans on the import and export of products. This forces logistics companies to adapt to rapidly changing political conditions and deal with aspects that do not depend on them. An example of such a conflict was the long rivalry between the two largest world economies: the United States and China. Both countries have a considerable GDP, strive to provide as many products as possible to the international market, and have extensive logistics networks.

1. The economic war with China peaked during the Donald Trump regime when he imposed tariffs on Chinese supplies. The introduced taxes reflected concerns about Donald Trump’s deficit but were very negatively perceived by the Chinese government led by Xi Jinping. The US government has decided to block Chinese exports or reduce them (Partington, 2019). Economic confrontation, however, has always had a tinge of ideological and political struggle. China and the United States are striving for positions not only of the best economies but for the total strengthening of ideology and politics. Both countries still have significant spheres of influence, to which they constantly extend their economic interests.
2. Retaliatory blocking from China was not long in coming because the history of the Sino-American conflict is very long. Tariffs imposed by China called into question the vast sums on which American trade depended. Tens of millions of dollars have become tariffed for the Chinese when trading with the United States, which led to the realization that the two giant economies are inseparable. The tariffs ended up causing significant damage to both countries, affecting the poor and increasing the unemployment rate.

Minor Point B

In the modern information society, knowledge and transparency are the keys to stability, including economic stability. A political struggle always contains an ideological aspect that creates an information bubble around impressionable people. Flawless information flows are essential for economic development, smooth supply, and logistics development. Nevertheless, in the political field, one can see how the rulers neglect these flows to maintain ideological oppression over the necessary sections of society. National security problems are growing, and logistics is fading into the background as an irrelevant sphere of the economy, as opposed to, for example, military equipment.

1. Didi Global has become an example of mutual claims between the US and China regarding distributing and preserving information and users. Both countries’ markets are enormous and developed; that is, all services provided to local consumers are likely to be successful, and companies will prosper later. The Chinese government has sacrificed the US market and consumers by moving Didi Global entirely to Hong Kong (McMorrow, 2021). It seems that for both countries, it has become only a matter of ideology and principles of security policy and foreign policy in general. From the point of view of the economy and the development of services in various markets, there was an illogical rollback, depriving both parties of possible benefits.
2. Another example of blocking Chinese services for security reasons was the departure of China Telecom. Events such as this show that the US government does not trust its partner and cannot trade with it and develop information services and resources. If information flows are not transparent, there can be no talk of cooperation and joint economic development and growth. China Telecom has built a very tight information supply chain around itself, where the US distrust of data communications comes in. Fears and suspicions of a partner led to the collapse of a very developed business. It can be argued that the Chinese government may have made concessions to prove disinterest and innocence. However, as the practice has shown, both states pursue different political goals and cannot back off them, fearing losing their reputation.
3. This year the international community (including the economic community) was shaken by the crisis in relations between Russia and Europe. The EU economy is one of the most energy-intensive economies and has been based on gas and oil produced in Russia for many years. The EU bought resources from Russia at consistently below market prices but is now in a quandary. The Russian crisis affected the world price per barrel and, as a result, the price per liter of gasoline (Europa, 2022, March 15). It has a substantial negative impact on logistics operations, as transportation costs have risen by about three times. Until the military conflict between Russia and Ukraine is over, the situation will not recover, and prices will not fall.

Solution:

The division of investments in different assets by territories and countries can save from such difficult situations caused by circumstances beyond the control of people in business. Proper distribution of capital, that is, diversification of operations, will help to reorient sales markets and master new types of production (Steinbock, 2018). Diversification is the globalized economy’s reverse mechanism, which realizes its parts’ mutual dependence only in rare cases, such as the Russian-Ukrainian war. Diversification will increase production efficiency and prevent the bankruptcy of businesses that seem to be in distress. Diversification, perhaps, can help not only in political disagreements but also in unforeseen circumstances, such as the coronavirus pandemic in 2020.

Major challenge D: fast changing technologies

Minor Point A

In recent years, logistics has successfully used AI-assisted virtual automation technologies. It facilitates the work of many managers and allows them to cope with everyday tasks quickly. Also, the Internet of Things (IoT) has been added to the latest technologies used for the benefit of convenient and fast transportation. Augmented reality allows a trained manager and a worker with minimal training to manage the transfer processes from anywhere in the world. These augmented reality mechanisms help manage complex inbound and outbound operations, including automated warehouses.

1. The use of AI and information technology significantly reduces the processing time of a single order, thereby meeting customers’ high demands and expectations. One of these breakthroughs was block chain technology, which increased customer confidence in logistics services. Real-time order tracking services allow people to see the supply chain at any point and from any device (smartphone, computer, tablet); the only thing that matters is the Internet. Customers can thus keep track of their orders on their own and detect problems quickly, keeping up to date with their resolution. Managers increasingly use warehouse management systems (WMS) and enterprise resource planning systems (Premkumar, Ramamurthy & Nilakanta, 2016). It improves planning for the entire company and eliminates unnecessary spending. Digital automation allows different people to collect product data and identify them using AIDC quickly; barcoding is the most common form of such automation.
2. COVID-19 has put staffing on the assembly line, and companies have had to part ways with most of their workers. Many of them have come to the aid of automation and the ability to replace the workforce with programs or robots. With the advent of automation everywhere, the need for a living labor force will completely disappear with time. Working in warehouses is unsafe for many people, so introducing technology will become an opportunity not to ruin your health for a salary. Since robots do not need to rest, they can perform human tasks more efficiently, eliminating the aspect of inattention and fatigue.

Minor Point B

Robotics has tremendous potential in logistics, as it minimizes human errors and helps people cope with their tasks much faster. Robotics reduces costs, and the freed-up funds can be spent on other areas of staff development. Physical automation turns logistics work into pure computer interaction and works at a distance from immediate objects. More young people will be able to come into logistics, especially women who are not available for complex physical labor due to physiological data.

1. Logistics is based on the work of drivers and truckers, and this is a challenging job requires endurance and good health. In recent years, the increasing adoption of self-driving vehicles based on 5G and AI technologies has become a reality. Such cars allow the most significant number of workers to interact with them, making the work more accessible. Thanks to this technology, fewer drivers have health problems, which calls into question specialized training and education for them.
2. A warehouse is a place where workers are required to have the endurance to carry heavy luggage or pack. Robotics can take on the most serious tasks of transporting luggage and constantly (non-stop) tracking objects. Sometimes goods need accurate and robust packaging, especially if they have a long road ahead, and robots can easily handle such packaging (Oh & Rhee, 2018). Thus, robots will reduce the number of jobs in warehouses, reducing the cost of labor, reimbursement, or compensation.

Solution:

1. In order to solve problems, the logistics business must actively invest in new technologies. The modern market is cruel to companies that ignore modern technologies, hoping to get by with old methods. As a rule, such companies are very quickly ‘eaten up’ by competitors who are not afraid of experiments and the risks associated with introducing information technology and AI. It is useless to deny the importance of technology, as all logistics are saturated with them: from the moment a customer clicks on a product to confirmation using a smartphone upon receipt of an order.
2. Companies should not be afraid of competition and should not shun it for fear of losing out in comparison. Businesses will always do better than their competitors in one area or another. Economic cooperation, especially in such a connecting area as logistics, must exude a thirst for productive competition, which will not be a conflict but a mutual development. Many conferences and meetings among the companies-employees can contribute to rapidly adopting technologies. However, one should be especially careful with the legal issues of intellectual property. Lawyers were puzzled by how to enter innovations into the intellectual property protection system. Still, now all problems in this field have been resolved.
3. Companies may change their business models if they do not consider implementing technological systems. These business models may not consider the new position of managers and staff and choose the wrong goals and objectives. With the availability of current information technology, company directors can take a fresh look at their capabilities. People in business and investigators should think about launching new services and pay attention to customer service, which lies in the systematic development of information technologies.

Discussion

Emerging View

1. The logistics industry has changed significantly in recent years, and many factors have influenced this at once. One of the biggest shocks to logistics operations and transportation has been the COVID-19 pandemic, which has changed global consumption forever. Recent years have shown that politics can easily influence the economy, even to the latter’s detriment, when it comes to great ideologies. Logistics operations continue to be affected by climate change and related issues (changing production, popularity of new brands, and new consumer psychology). New technologies are drastically affecting the logistics industry, creating new opportunities for it to improve its service.
2. The described problems have created and continue to create uncertainty in recent years, which slows down planning and decision-making. This uncertainty makes forecasting difficult and prevents health companies from assessing their capabilities and budgets. The logistics industry has shown rigidity in a rapidly changing environment when economic processes have not been able to influence either the formation of adequate demand or the supply of this demand with the correct number of proposals. Because of this, the ability to adapt is now recognized as the most important for all areas of business.
3. Adaptive mechanisms allow businesses in all areas to stay on the cutting edge of innovation for a long time. Customers want to trust such companies and are not disappointed in them even under the most unpredictable circumstances. These businesses have an excellent reputation, as customers see how responsible managers and employees approach service delivery. Perhaps, after the shocks that have occurred in recent years, the world and the economy will no longer be the same. Political and economic processes were exposed in all dependence on surrounding circumstances.
4. Businesses that want to play long-term and provide their services must adapt to any circumstance; otherwise, they will slowly age, be abandoned by customers, or die from the forces of competitors. Aging businesses are slowly losing their audience, working mainly for those who were able to attract a few years ago and decades ago. Companies that have disappointed customers suffer a shameful loss of money and sometimes reputation, especially if technology obsolescence is accompanied by scandal and loss of credibility. Corporations ‘eaten up’ by competitors become parts of large companies or humiliatingly accept their conditions of subordination and cooperation on unfavorable conditions in advance.

Solutions

1. COVID-19 has been a challenging period for logistics as it has meant physical and social restrictions that, if not met, have meant a loss of health for workers. It is recommended to prioritize the protection of the health of key personnel. It is necessary to find out the marital status of employees (in case of illness of children) and chronic diseases. After-work activities for colleagues should become the most healthful and least entertaining. It is essential to encourage flexible working hours and the ability to switch from remote work to the office (to the warehouse) and vice versa. The authorities should also be lax since preventive measures to protect employees from a sick colleague can become the basis for transferring the team to complete remote work. Employees must comply with regulatory regulations, as failure to comply carries enormous risks. Punitive measures should not be the key to enforcing these regulations since people are talking about adult workers who are experts in their field, not children who want to play pranks. It is necessary to notify all employees of the importance of complying with the dictated measures.
2. Sustainability should become the key to long-term existence for all logistics companies, and this should become a strategic task that requires careful development and reflection. The transition to sustainable development is consistent with many values ​​of the modern world, including environmental, political, and social ones. Triple bottom line reporting and CSR programs must be introduced into a company’s standard bookkeeping. It will help track spending and possible future investments in social and environmental areas. In addition, it will be a tremendous reputation for the company because modern society is very interested in purchasing goods and using services that care about nature. To do this, firms should consider any opportunity to introduce electric vehicles into operation. Reducing the amount of carbon will also be an advantage for the company in environmental protection.
3. Market diversification remains a central opportunity to avoid business bankruptcies and supply chain disruptions amid geopolitical tensions. Proper distribution of investments will reduce risks but increase the company’s obligations to different shareholders. Geopolitical strife and the struggle of ideologies is a sphere of significant interests of other countries, which will remain even against the economic logic of universal trade and cooperation. In such situations, the company itself must clearly understand its values but maintain, in general, a sober mind.
4. The rapid development of technology does not allow companies to rest and relax, as the competition in this area knows no mercy. Companies should support as much innovation as possible, even with some risks. The risk of the invention is nothing compared to losing the opportunity to play with competitors. People in business and different owners must compare creations with those introduced by leaders, and cooperation must not be delayed. The introduction of innovations is a productive competition that simultaneously develops a large market and companies separately. Sometimes the introduction of innovations allows managers to understand that their business model, in general, is outdated. There is a big difference between a standard business model and one based on information technologies and AI, for example.

Conclusions

1. Modern research identifies many challenges for logical operations, but among them, it is possible to highlight the most noticeable and significant ones. The first such challenge was COVID-19 pandemic, which impacted global trade and transportation. COVID-19 has severely impacted the international community, not only in the field of transportation but also in consumption in general. People have changed their attitude to shopping and priorities in consuming goods. The full impact of the pandemic on humanity can be traced only a few years after its finale. The second major challenge was the high demand for sustainability and development in this area. Consumer interest is growing in brands that openly support environmental initiatives. People do not want to feel guilty about harming nature and taking care of their health. International political tensions include conflicts, wars, and sanctions; all this has an impact on international shipping and trade. Politics interferes with the economic processes of development and growth, which stops many companies. The latest challenge is information technology invading the work of logistics firms. They could develop broadly thanks to COVID-19 and requests for resilience, which shows the connection between the challenges.
2. Supply chains need to be restructured first and foremost to create a sustainable future for logistics operations; transport companies need to be flexible and adaptive. Current conditions change frequently and often for reasons unrelated to the economy and trade. Sustainable operations will help companies develop in line with the values ​​of today’s global community. The transition of companies to electric vehicles and the implementation of other installations to improve the environment will help companies maintain popularity and reputation and increase a new customer base. Channel diversification will help avoid future bankruptcies of companies or deterioration in performance. Neither the speed nor the quality of service will suffer or only slightly if the competent location of investments in territories becomes the norm for most businesses. This method is suitable for political instability, conflicts, and sanctions and is a good safety cushion. The development of new sound technologies (information technologies, block chain, AI) always brings only profits to companies. Interest in this area should not fade away from managers and investors, as this is fraught with a loss of status in the market.

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