Quotation Schuh, Arnold. 2020. Changing business challenges for Western multinationals in CEE in times of the Covid-19 pandemic. Vienna Insurance Group "Expertise Matters" Series, Webinar, 19.11.20


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Abstract

The outbreak of Covid-19 in early 2020 stopped a formidable 5-year growth period in CEE. To assess the impact of the pandemic on the future development of the CEE region, the analysis of pre-crisis trends in the business environment is a good starting point. We identified six structural challenges that shall be on the radar of Western multinationals operating in EU-CEE: labor shortage and demographic decline, tendencies towards nationalist-populist policies, the decline in institutional quality, the transition from a low-cost economic model to an innovation-driven economy, a changing competitive landscape and the exposure to EU/global politics. Seen through the lens of the Covid-19 crisis, we do not expect many changes in directions of those trends, the pandemic is rather reinforcing them. The postponement of the labor shortage and the accelerated digitalization are among the positive outcomes. The other expected developments are rather threatening for the incumbent Western multinationals. They will face a stronger and more intervening state, increasing corruption and a reduced funding from the EU. The management of the Western multinationals will have to pay more attention to the economic and political affairs in the individual countries and consider the more comprehensive use of political strategies to protect their local businesses.

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Publication's profile

Status of publication Published
Affiliation External
Type of publication Unpublished lecture
Language English
Title Changing business challenges for Western multinationals in CEE in times of the Covid-19 pandemic
Event Vienna Insurance Group "Expertise Matters" Series
Location Webinar
Event country Austria
Date Nov. 19, 2020
URL https://www.vig.com

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Schuh, Arnold (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5307 Business and management economics (Details)
5320 Marketing (Details)
5333 Business management (Details)
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