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A microscope on de-risking

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  • Luo, Yadong

Abstract

This study critiques the pervasive yet vaguely defined concept and policy of “de-risking” adopted by many nation-states and its implications for international business. The de-risking policy is a key driver of friend-shoring, re-shoring, and near-shoring. By examining the underlying properties of de-risking and its multiplex impacts, we advocate for a more thoughtful, precise, and nuanced understanding of the concept. A common consequence, perhaps to some extent unintended, of de-risking policies is the increase in the complexities and costs associated with internationalizing and internalizing for multinationals. We further explore how companies navigate the intricate interplays of emerging risks and de-risk regulations. Finally, we highlight how international businesses can manage geopolitical and geo-economic risks shaped by de-risking policies and fractured globalization more broadly, emphasizing corporate efforts such as a risk mindset, managerial foresight, and corporate orchestration to mitigate and manage new international business risks.

Suggested Citation

  • Luo, Yadong, 2025. "A microscope on de-risking," Journal of International Management, Elsevier, vol. 31(2).
    • Handle: RePEc:eee:intman:v:31:y:2025:i:2:s1075425325000092
    DOI: 10.1016/j.intman.2025.101231
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    References listed on IDEAS

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    Cited by:

    1. Sun, Yi & Lin, Yong & Shi, Yongjiang, 2026. "Sustaining ecosystems amid geopolitical conflicts: Evidence from Chinese EMNEs," Journal of International Management, Elsevier, vol. 32(1).
    2. Liu, Xuemeng & Hassan, Joel & Gao, Hongzhi & Sharma, Revti Raman, 2025. "A typology of de-coupling in international sourcing by MNEs in selective de-globalization," Journal of International Management, Elsevier, vol. 31(6).
    3. Peng, Xinmin & Liang, Yanze & Wang, Yao & Zhou, Steven Shijin, 2025. "How do MNEs respond to internationalization tensions under “new globalization”: A paradoxical view," Journal of International Management, Elsevier, vol. 31(6).
    4. Zhou, Abby Jingzi & Li, Peter Ping & Luo, Yadong & Zhou, Steven Shijin & Prashantham, Shameen, 2026. "From followers to leaders: A four-stage process model of EMNE capability development," Journal of World Business, Elsevier, vol. 61(2).

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