Transformations  in
Business & Economics

Internationalization of Markets: The Internationalization Process of Danish Companies in Lithuania
Dainora Grundey

ABSTRACT. After Lithuania gained independence, the structure of business had changed radically. The transitional period from planning to market economy was marked by substantial changes in political and legal fields, which together with exponential growth of economy made Lithuania attractive for foreign business. From the time of independence, Lithuania as a completely new market with huge potential and resource possibilities attained growing flow of FDI, establishment of Joint Ventures and intensive flow of import/export. Shortly speaking, this process when companies engage in business in more than one country employing various market entry modes, starting from imports/exports, to FDI, is called the internationalization process of a company. Denmark, as a number one investor in Lithuania, plays an essential role in exploring internationalization processes of foreign companies in Lithuania. Therefore, the Danish companies performing business in Lithuania are the object of research of this survey. The goal of the research is to create a thorough pattern of internationalization of Danish companies in Lithuania, which includes the process, motives of internationalization and international market selection. The objectives are formed as following:

• Analyze both international and Lithuanian literature on internationalization aspects in order to set a theoretical basis for empirical research.
• Present universe statistical analysis on internationalization of Danish companies in Lithuania especially of FDI.
• Analyze the dynamics of Lithuanian business environment for foreign businessmen since the time of independence and identify the competitive advantage of Lithuania.

By employing empirical research analyze internationalization process of Danish companies in Lithuania and disclosure the motives of internationalization with the focus on FDI.

KEYWORDS: internationalization of markets, market development, international market entry mode, FDI, Danish companies, Lithuania.

JEL classification: O19, O16, F23, P2.