From the editor: COVID-19 and international business policy

Abstract

We introduce a special collection of papers on COVID-19 and international business policy that looks at the global policy challenge from different perspectives. The combination of confinement and protectionist measures including export bans, import tariffs and border closures that were introduced in response to the COVID-19 pandemic affect MNEs by increasing trade costs and amplifying the costs of communicating tacit knowledge. In this editorial, we draw specific attention to how these policies impact the heart of MNEs’ activities – the knowledge-intensive intangibles. Physical distancing limits the face-to-face meetings that undergird the production of intangibles in large urban hotspots. At the same time, travel restrictions constrain MNEs’ abilities to connect to and source knowledge from their foreign partners. Virtual conferencing has helped MNEs to cope with these challenges but it remains an imperfect substitute. A protracted public health crisis that would require limiting social interactions in the medium term might push MNEs to reconfigure their knowledge management strategies both locally and globally.