The Circular Economy as a New Production Paradigm to Enhance Resilience of MNEs and the Economic System

Abstract

The consumption of natural resources has dramatically increased over the last 50 years and is expected to continue to rise. Also, environmental and geopolitical issues expose the economic system to uncertainty and risk. We claim that the circular economy approach is a potential solution that enables multinational enterprises to enhance their resilience by reducing the reliance on raw materials and the fragility of the supply chain, improving efficiency, and generating new revenue streams. This, in turn, affects the global value chains and the economic system. Lastly, we outline the role of all global economic actors in the circular transformation.