COVID-19 and International Diversification: A New Paradigm for Multinationals

Abstract

COVID-19 has challenged longstanding assumptions about multinationals’ international diversification strategies. Unlike corruption or war, this new type of uncertainty is unavoidable. All countries are affected. And, throughout the pandemic, having a global workforce has created additional challenges related to managing diverse policies, resources, and cultures. Going forward, executives of multinationals will first and foremost consider business continuity when selecting investment locations. Multinationals, especially those in service-based industries, likely will scale down their global operations and focus on countries with infrastructures that support remote work and sustaining healthy populations. Key insights come from an executive who managed his firm’s COVID-19 response.