Geopolitical Risk and Financial Markets: Emerging Trends, Research Gaps, and Implications for International Trade

When addressing international trade, the most commonly referenced concepts include imports, exports, exchange rates, customs tariffs, and, naturally, supply and demand. This chapter examines geopolitical risk (GPR) as a critical factor that significantly influences financial markets and, by extension, each of these trade-related indicators. It reviews the historical development of this concept within academic literature and analyzes its spillover effects across economies. Through an in-depth examination of the implications of geopolitical risk in international trade—supported by a comprehensive bibliometric analysis and literature review—this study identifies thematic and emerging trends, as well as research gaps that may inform future lines of inquiry.