Pakistan, Nov. 6 -- The world is entering an era in which economic decisions are increasingly dictated by geopolitical fears. From semiconductor factories to energy supplies, governments are discovering that the cheapest option is not always the safest. But as nations pursue economic security, they must confront an uncomfortable question: how much prosperity are they willing to sacrifice in the pursuit of protection?

For decades, the global economy operated on a relatively straightforward promise: countries would specialise in what they produced best, businesses would source materials from wherever they were cheapest, and consumers would benefit from lower prices and greater choice. A component manufactured in China, a design developed i...