The global economy is made up of many different economic cogs. Things may be starting to change, which could affect some ASX shares more than others.
According to thoughts from Blackrock, this new period is "the most fraught global environment since World War Two". Blackrock said:
We see geopolitical cooperation and globalisation evolving into a fragmented world with competing blocs. That comes at the cost of economic efficiency. Sourcing more locally may be costlier for firms, and we could also see fresh mismatches in supply and demand as resources are reallocated.
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BlueScope Steel Limited (ASX: BSL)
BlueScope is one of the largest steel businesses in Australia. It also has operations in the US and New Zealand.
Steel is one of those commodities that can be produced worldwide, so in many ways, BlueScope is competing on a global stage. But, if western countries were to focus on just buying from western companies, or even just buying from domestic sources, then BlueScope could be a beneficiary.
While there may be fluctuations in demand, the ASX share could achieve stronger margins for its production.
However, it has recently come under pressure after judge Justice O'Bryan handed down a decision against BlueScope that it had engaged in "cartel conduct" as it "attempted to induce competitors to enter not price fixing arrangements" between September 2013 to June 2014.
The BlueScope Chair John Bevan said in an announcement to the ASX:
In the time since BlueScope first became aware of the conduct which led to the legal proceedings, BlueScope has implemented a number of steps to substantially strengthen its programs to enhance awareness of, and compliance with, competition law. The company has also made improvements to our organisational structure, internal systems and processes, training for employees, and developed in-house advisory capabilities in competition law.
Despite that ruling, the BlueScope share price is up 6% over the past month.
Transurban Group (ASX: TCL)
Transurban is a leading toll road builder, owner and operator. It has a number of toll roads in Australia and North America.
A lot of traffic goes on Transurban's roads. People would still want to go places in a time-efficient manner, even if globalisation were to be reduced.
The ASX share is currently benefiting from a recovery from traffic after the impacts of COVID-19. It's also seeing its tolls rise at a stronger rate because the indexation is linked to inflation, which is elevated at the moment.
Despite the higher interest rates, Transurban shares are flat for the year, and it has beaten the performance of the S&P/ASX 200 Index (ASX: XJO) by a small amount.
Cobram Estate Olives Ltd (ASX: CBO)
This may not be a familiar business to some investors, it is a farmer of olives and producer of Cobram Estate extra virgin olive oil, as well as other brands. It has a market value share of 49% in Australian supermarkets of extra virgin olive oil sales, and a 36% market value share of total olive oil sales.
A couple of months ago at its annual general meeting (AGM), the ASX share noted that the:
…vertically integrated model shields us from supply chain disruption. Unlike most food companies, our model extends from olive farming through to the sale of branded, locally grown extra virgin olive oil. The vast majority of our production and sales are within the two countries we operate – Australia and USA.
Despite being positive about the company's future, the Cobram Estate Olives share price is down around 25% in 2022.
