The Effectiveness of Polish Companies Performing Abroad

Abstract

Companies operating on foreign markets search for greater effectiveness. Market expansion through foreign direct investments is the most advanced form of company internationalization. According to the literature, FDI are established mostly by profitable companies due to i.a. relatively high investment costs. Polish companies have begun to strengthen their position on foreign markets. As studies show, company expansion on foreign markets usually brings higher incomes in comparison to companies performing internationally. However, case of Polish companies indicates that companies operating only on national scale are more profitable.

Keywords: foreign direct investment, FDI, profitability

JEL Classification: F21, F14