The pandemic, by highlighting the vulnerabilities arising from global interdependencies, marked a turning point in perceptions of the benefits and risks associated with globalization. Nonetheless, international trade has demonstrated remarkable resilience in recent years, despite growing calls for reshoring and the reindustrialization policies implemented by many major economies. Firms, however, now operate in an international environment that differs significantly from that which prevailed prior to the pandemic—one in which investment decisions must take into account a broader set of risks related to supply chains, market access, and geopolitical uncertainty.

These risks are particularly relevant for multinational enterprises, whose location choices shape global value chains. Analysis of their employment patterns since the health crisis shows that MNEs have achieved better employment performance than domestic groups, especially in their domestic affiliates—suggesting that a process of reshoring may be underway. This bias in favor of home-country affiliates persisted through 2022, indicating a possible structural shift in the organization of multinational enterprises.

To find out more, see Multinational Enterprises Since Covid: Stronger Than Domestic Firms, Especially at Home and Multinationals Here and There: Affiliates' Response to Global Crises.