Internationalization in Times of Uncertainty

Abstract

This chapter aims to explore the uncertainties that the COVID-19 pandemic induced in internationalization. In this regard, the COVID-19 pandemic challenges companies worldwide as global value chains were interrupted and business models were contested. The theoretical background describes the internationalization processes and the specific role of foreign direct investments (FDI), but also the basics of uncertainty in doing business. Because of the scope of internationalization and the peculiarities of the COVID-19 pandemic, a descriptive analysis of secondary data from global databases was conducted. This includes macroeconomic data and also global research reports. With a focus on European-Asian relations, the results reveal an interruption in the flows of goods and services in Eurasia, but more importantly, also in FDI. Further on, there is a correlation between uncertainty and FDI flows. Finally, this chapter discusses future directions in internationalization, including resilience, regionalization, and the rise of China in global economics.