How the Russia-Ukraine Conflict Disrupts International Business and Food Security in Africa

Abstract

Instructor’s Name Course Number’ The Russa- Ukraine conflict threatens global economic growth triggering turmoil in the financial markets and creating uncertainty in the worldwide economy. The war has caused a rise in food and energy prices. The war has discorded the demand and supply chains causing adverse implications to the consumer. The war is likely to impact low-income economies due to their dependence on the two nations for various commodities. The most common international business that connects countries around the globe is exporting. This means selling abroad through foreign sales and distributions. Africa has one of the poorest economies in the world, and they depend on the westerners for food security and many commodities such as energy and the manufacturing industry. Africa is reliant on food from Russia and Ukraine, and they are significantly receiving price shocks as a result of the war. According to (Benton et al., 2022), the war between the two nations has threatened the supply of essential needs such as energy, fertilizers, and food. The war has dismantled business between Africa and abroad. Russia is one of the biggest exporters of fertilizers globally; hence the rising fertilizer prices are a massive blow to Africa. It is a threat to food security and a rise in the food price, mainly due to Africa's dependence on fertilizer from abroad for agricultural production. Africa also depends on Russia and Ukraine for wheat and sunflower. It has become a significant blow due to the closure of significant port operations such as the Black Sea. The rise in oil prices has significantly affected food production costs, becoming a significant blow to most international businesses that link to Africa. According to the World Trade Organization (WTO), the Russia-...