Internationalization of Business and National Competitiveness

DOI: 10.20542/0131-2227-2016-60-12-17-26

G. Olevsky, University of Latvia, 19, Raina Blvd., Riga, LV–1586, Latvia (

Abstract. The internationalization of business activity contributes to strengthening of the country's competitiveness at the global marketplace. National competitiveness is investigated through the prism of political and economic “weight” of the country in the business framework of the world community. According to the information of the Report on the global competitiveness – 2015, most countries – world leaders in the gross domestic product, failed to get into the top-10 of globally competitive economies. The results of a survey of over 14 000 business executives around the world suggests that entrepreneurs in industrially developed countries (Japan, USA, Germany and the UK), long been successfully operating in the absence of corruption clutches, express their displeasure with the tax system that prevents their enrichment. One of the priorities of small and medium-sized enterprises (SMEs) participation in the process of internationalization is identified now with the spread of born global enterprises. Successful operation of such companies, originally aimed at doing business at the global marketplace, is preordained by free use of information and communication technologies. The necessary condition for business activity effective internationalization is the development of the information technology infrastructure of the market. Emergence of industrial technologies, affordable to the SME of manufacturing industry, became the sufficient factor of business internationalization's attractiveness. Industrial business internationalization process is likely to develop, provided that the major players on the world market – corporations – will have an interest in cooperation with SMEs that are expanding beyond national markets. Competitive mechanism of cooperation, not competition (struggle), is typical today for such well-established forms of internationalization of industrial enterprise as production cooperation and outsourcing. Manufacturing corporations through subcontracting are able to cooperate with a large number of SMEs supplying components and details of the final product. The additive manufacturing technology may form the material basis for this kind of cooperation between industrial corporations and SMEs. Offshoring (a kind of outsourcing when an enterprise in another country is executing order) should be regarded as an instrument of strengthening SME positions at the global market.

Keywords: manufacturing, national competitiveness, internationalization of business activities 


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For citation:
Olevsky G. Internationalization of Business and National Competitiveness. World Eonomy and International Relations, 2016, vol. 60, no. 12, pp. 17-26.

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