FDI plays an important role in any country's economical activities. Companies big or small can not solely depend on the conventional source of finance all together. For financial and technological support they have to depend on foreign resources. For big companies getting FDI is not difficult issue because of financial security, reach in global market and business experience but in SME/SSI it still an unsolved puzzle or a buzzword. The paper is concerned with one of the ways of contributing to strengthening the indigenous SME sector in a situation of resource scarcity. Specifically, the paper is concerned with the potential role of foreign direct investment (FDI) in relation to the long term competitive development and inter-nationalisation of the SME sector in transition and developing countries.
FDI, SSI, Globalisation, SME, MNC
