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Abstract
The theoretical part of this paper is focused on presenting the main strategies of internationalization that can be used by SMEs in order to diversify their markets and enhance their profitability. The empirical research is aimed at presenting and analysing statistics regarding the performance of Romanian SMEs in relation to the average of overall EU SMEs. The purpose of this paper is to analyse the activity and performance of Romanian SMEs in relation with SMEs from other European countries. A set of concrete recommendations are formulated for creating a better economic and legal environment for small and medium enterprises from Romania that have set the objective of extending on other European markets or are in the process of internationalization of their business.
Keywords: Small and medium enterprise (SME); Romania; European market; internationalization;
JEL Codes: D21;F23;L21;
1.Introduction
The accelerated process of globalization in recent decades has determined the world economy to become increasingly integrated, strengthening the global business environment, beyond national and regional environment (Daniels, 2015). Globalization is defined in several ways, each reflecting a particular scientific or ideological position on the meaning of the concept. Two main approaches can be distinguished: globalization as a set of interdependencies - growing in recent decades - between national economies; the theory is based on considering national economy and the nation state as the basic structures of the global world and globalization as a progressive process of integration, mainly in the economic field, in a single system, structured on several levels: local (national), regional and global.
The internationalization of a company can be considered as a process with several stages, of progressive involvement in international affairs. A general model of this process includes four main stages - the internationalization of trade, the internationalization of production, company internationalization, globalization of business - each of them corresponding with specific forms of transactions and motivations. However, depending on its resources and objectives, a company can engage more or less deeply and sustainable into the international business environment (Popa, 1997).
The integration of European market, liberalization of markets, the evolution of ways of communication and exchanging information, the development of transport corridors and technology are factors that have opened new horizons and created the proper framework for new business opportunities, not...