International business transformation patteerns of czech enterprises since the velvet revolution and the velvet divorce

Abstract

From a macroeconomic standpoint, the Czech Republic has been viewed as a leading example of successful transformation from a state owned to a privatized economy. Yet at the firm and industry levels, the transformation process is still in its early stages. This article focuses on the transformation of outbound international business activities of the country and offers statistical and case study evidence to support four propositions describing the transformation process to date. First, most Czech international business activity is oriented toward its European neighbors. Second, globalization is beginning in a few selected firm and industries. Third, the reliance on low price rather than other international marketing advantages limits the development of world class images of Czech export commodities. Fourth, beginning globalization efforts of Czech firms focus on emerging markets of Asia, South America and Africa and to a lesser extent on the United States but largely exclude Japan.