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Examining the Role of External Business Factors in Internationalization Of Manufacturing SMEs – Case of Croatia

Internationalization represents an expansion of economic activity beyond the boundaries of domicile economy and includes export and import activities. Because it allows lowering costs by accessing a new suppliers or increase revenues by accessing new markets, it represents an opportunity for gaining competitive advantage for small and medium enterprises on both domestic and foreign markets. This paper empirically analysis effects of external business factors: location, availability of financing, competition and cooperation, on internationalization of SMEs in case of both export and import activities. Results from this research should help governments in determining key areas and measures for successful internationalization of manufacturing SMEs.

Internationalization ; External Business Factors ; Strategy ; SMEs ; Croatia

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