International Investment Perspectives 2007
Freedom of Investment in a Changing World
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The International Investment Dimension of SMEs: a Stocktaking of the Evidence
Globalisation, it is often claimed, is changing the FDI landscape. New technology, more open and transparent investment policies and greater emphasis on markets as a resource allocation device are playing a part in advancing the globalisation of production through international investment. These new developments are a force driving the internationalisation of SMEs. Advances in telecommunication and information technologies, for instance, have made it easier for new and small businesses to establish contact with foreign partners and customers and reduced the importance of economies of scale in many industries (OECD, 2006). Moreover, as large businesses outsource parts of their supply chain in an expanding global economy, opportunities for SMEs to internationalise through direct investment or crossborder co-operation agreements, such as joint ventures, expand.
Also available in: French
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