Motives for the international expansion of Polish enterprises with special emphasis on political risk

The need for facing up the competitors and the wish to build the competitive advantage on the market contribute to enterprises’ expansion abroad. The decision concerning geographical expansion may be caused by making advantage of chances which appear on foreign markets. Nevertheless, it can also happen that adverse conditions of the enterprise’s external environment make the presence in the host country difficult or even impossible. This situation can appear when the political risk occurs in the country of expansion. The purpose of this paper is to present the characteristics of the enterprises’ motives of expansion on foreign markets with particular emphasis on the nature and specificity of political risk. In order to illustrate this important problem, the author made a synthetic analysis of the business environment in Ukraine and Russia during the conflict in the East of Europe. In the paper two types of research methods were used: methods of data collection and methods of organising and processing information.

Motives for the international expansion of Polish enterprises with special emphasis on political risk

The need for facing up the competitors and the wish to build the competitive advantage on the market contribute to enterprises’ expansion abroad. The decision concerning geographical expansion may be caused by making advantage of chances which appear on foreign markets. Nevertheless, it can also happen that adverse conditions of the enterprise’s external environment make the presence in the host country difficult or even impossible. This situation can appear when the political risk occurs in the country of expansion. The purpose of this paper is to present the characteristics of the enterprises’ motives of expansion on foreign markets with particular emphasis on the nature and specificity of political risk. In order to illustrate this important problem, the author made a synthetic analysis of the business environment in Ukraine and Russia during the conflict in the East of Europe. In the paper two types of research methods were used: methods of data collection and methods of organising and processing information.