Internationalization of Albanian Firms: Challenges and Opportunities

Abstract

In this paper we examine how the level of internationalization, i.e. a firm’s relative exposure to foreign sales, affects individual SMEs in Albania. Since it is conducted using a data sample with albanian SMEs, its applicability in other countries may vary. The purpose of this study is to increase the knowledge and provide insights on how internationalization affects SMEs in general and in Albania in particular. This empirical analysis aims to study if Albanian firms are internationalized or not, for a panel of 50 Albanian small and medium enterprises for the period 2014 to 2015. For the realization of this paper we were based on a rich contemporary literature but also in the analysis of data obtained from firms’ balances and from a survey in Albanian firms for the last 2 years. Results of this work will help the work of managers and financial managers in Albanian companies, but also other persons interested in the field of international finance, at a time when the main reason for the financial crisis in the world nowdays is precisely the lack of liquidity which consequently leads to the reduction of exports to foreign international markets.