The (COVID-19) pandemic and the new world (dis)order

The COVID-19 pandemic produced a significant environmental jolt that has altered the trajectories of economies and institutions and the strategies of MNEs. We examine the pandemic effects on countries' political and regulatory institutions, the interplay between their formal and informal institutions and the resulting environmental uncertainty. These changes are transforming the global landscape, MNEs' raison d'etre and their international strategies. MNEs are having to change or develop new country- and firm-specific advantages, refashion their FDI, focus supply chain networks, and emphasize regional strategies and localization. Although these strategies may help them to bound uncertainty, they produce other forms of risk. A new economic order is likely to arise along with transformed MNEs.

Automated summary

The COVID-19 pandemic has reshaped the global economy and the strategies of multinational enterprises, impacting political and regulatory institutions worldwide. The increased environmental uncertainty has prompted businesses to adapt their investment strategies and supply chain networks, as well as to emphasize regional strategies and localization. These changes may help mitigate uncertainty, but also introduce new forms of risk, leading to a potential transformation of multinational enterprises and the emergence of a new economic order.