Abstract
Expansion to foreign markets usually implies the selection of an adequate financing facility that would fit a given transaction, as well as the specificity of a particular foreign market. This paper explores how Bank Gospodarstwa Krajowego (BGK) in its capacity of a state development bank funding the expansion of Polish business to other countries, i.e., exports and foreign direct investment projects carried out by Polish businesses or their foreign affiliates. The author's considerations focus on instruments offered by BGK, which provide direct financing, such as loans to foreign buyers and investment loans dedicated to projects carried out in other countries. Moreover, the paper discusses, inter alia, the current data for Polish exports, as well as selected transactions that BGK supported financially over the period 2015-2018.
Highlights
Since Poland joined the European Union structures (2004) we have been witnessing an increasing intensity in the development of international relations established by Polish enterprises
The most frequently used measures of internationalisation include the share of exports in the GDP or the size of foreign direct investment (FDI) made by domestic companies abroad
According to data provided by GUS (Statistics Poland), Polish exports has increased over six-fold since 2000 in nominal terms and a quicker increase in exports substantially changed the structure of Polish GDP: the share of exports in the GDP in 2000 amounted to 18.5%, while in 2017 it reached as much as 44.4%
Summary
Since Poland joined the European Union structures (2004) we have been witnessing an increasing intensity in the development of international relations established by Polish enterprises. Product expansion (exports) – the simplest and the most popular form of foreign expansion of businesses consisting in selling goods and services manufactured or rendered by a domestic company To pursue such activities abroad, we do not need to engage any substantial resources (financial or human) or have deep knowledge about a given market. In accordance with the Uppsala Model, internationalisation starts with exports, which initially are occasional and further evolve into a systematic activity carried out with the involvement of local agents (intermediaries) Such collaboration helps domestic firms in building long-term trade relationships with foreign partners, getting acquainted with the market, its perspectives and ramifications.
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