Emerging patterns of international business: Implications for public policy

Increasing numbers of small and medium sized firms (SMEs) are becoming active in international business. This phenomenon is being facilitated by numerous trends in the macro-environment of the firm. However, SMEs are typically quite resource-constrained relative to their larger, traditional rivals. Many SMEs fail to bridge the gap between initial exporting efforts and ultimate success abroad. We propose a number of programs that governments can implement to help SMEs in overcoming the initial, challenging period of internationalization.