---
id: "action-classify-regulatory-logic"
type: "action-item"
source_timestamps: ["§ Invest in trust-building institutions and a \\\\\\\"regulation taxonomy\\\\\\\" for multiple markets."]
tags: ["strategy", "compliance", "market-analysis"]
related: ["concept-regulatory-taxonomy"]
action: "Map global operations against a taxonomy of permissive, precautionary, state-directed, and hybrid regulatory regimes."
outcome: "Strategic resilience against fragmented compliance requirements and sudden geopolitical shocks."
sources: ["futures"]
sourceVaultSlug: "hbr-seg-futures"
originDay: 2
articleStem: "hbr-foci-75-fragmenting-digital-economy"
sourceUrl: "https://hbr.org/2026/06/what-a-fragmenting-digital-economy-means-for-global-competition"
sourceTitle: "What a Fragmenting Digital Economy Means for Global Competition"
---
# Classify Markets by Regulatory Logic

**Action:** Stop treating the global market as having a harmonized technology stack. Classify target markets by their **regulatory logic** — *permissive, precautionary, state-directed, or hybrid* — using the [[concept-regulatory-taxonomy]], and build **scenario plans** contingent on regulatory or geopolitical shocks (e.g., stricter cross-border data rules or tariff-driven restructuring).

**Outcome:** Strategic resilience against fragmented compliance requirements and sudden shocks such as [[entity-iran-war]] or new data-localization regimes.