Strategic responses of American and European MNES during an era of trade protectionism

Abstract

This thesis explores the impact of deglobalization on the business strategies of American and European MNEs with a presence in China, analyzing them through the lens of trade protectionism as a catalyst of deglobalization. We examine the rise in trade protectionism, particularly between the decoupling strategy of the US against China, but also the “derisking” strategy of Europe, illuminating how a rise in protectionism contributes to the current volatile business environment. This paper also delves into the strategic responses of multinational enterprises to new challenges, such as sanctions and the necessity for revised cost-benefit analyses. The thesis argues that while the deglobalization trend is less apparent in financial data, strategic decoupling in key industrial areas such as technology and the prioritization of national security over economic logic signifies a paradigm shift with implications for American and European MNEs. The insights generated from this paper were obtained through interviews with experts from MNEs and consulting firms. This thesis contributes to the broader discourse on the future of globalization by offering insights into the rise in protectionist tendencies and the ensuing reevaluation of international business strategies.

Date of Award	3 Jul 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter V. Rajsingh (Supervisor) & Ling Eleanor Zhang (Co-Supervisor)