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Covid-19 and the dynamics of distance in international business

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Listed:
  • Cote, Christine
  • Estrin, Saul
  • Meyer, Klaus E.
  • Shapiro, Daniel

Abstract

Distance is a central concept in the teaching of International Business (IB). However, most textbooks treat distance as static or slowly changing. We argue that distance is inherently a dynamic construct, as highlighted by the impact of COVID-19 on international business activities. Using the popular CAGE framework as a baseline, we illustrate the implications of distance being dynamic by introducing likely effects of COVID-19 on distance, and by discussing in depth barriers to the movement of people as an important aspect of distance. We conclude with implications for the application of distance in corporate decision making and international business teaching.

Suggested Citation

  • Cote, Christine & Estrin, Saul & Meyer, Klaus E. & Shapiro, Daniel, 2020. "Covid-19 and the dynamics of distance in international business," LSE Research Online Documents on Economics 107938, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:107938
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    File URL: http://eprints.lse.ac.uk/107938/
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    References listed on IDEAS

    as
    1. Cote, Christine & Estrin, Saul & Shapiro, Daniel, 2020. "Expanding the international trade and investment policy agenda: the role of cities and services," LSE Research Online Documents on Economics 104003, London School of Economics and Political Science, LSE Library.
    2. Erik Brynjolfsson & Xiang Hui & Meng Liu, 2019. "Does Machine Translation Affect International Trade? Evidence from a Large Digital Platform," Management Science, INFORMS, vol. 65(12), pages 5449-5460, December.
    3. Christine Côté & Saul Estrin & Daniel Shapiro, 2020. "Expanding the international trade and investment policy agenda: The role of cities and services," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 199-223, September.
    4. Tatiana Kostova & Sjoerd Beugelsdijk & W. Richard Scott & Vincent E. Kunst & Chei Hwee Chua & Marc Essen, 2020. "The construct of institutional distance through the lens of different institutional perspectives: Review, analysis, and recommendations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 467-497, June.
    5. Christine Côté & Saul Estrin & Daniel Shapiro, 0. "Expanding the international trade and investment policy agenda: The role of cities and services," Journal of International Business Policy, Palgrave Macmillan, vol. 0, pages 1-25.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Lilac Nachum & Peter J. Buckley, 2023. "Spatial and temporal distances in a virtual global world: Lessons from the COVID-19 pandemic," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(6), pages 1121-1133, August.
    2. Sato, Akiko & Panibratov, Andrei, 2023. "Causal mechanisms of COVID-19 disruptive effects on liability of foreignness and the emergence of new firm-specific advantages," International Business Review, Elsevier, vol. 32(4).

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    More about this item

    Keywords

    distance; Covid-19; international travel; international business; CAGE framework; coronavirus;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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