ABSTRACT
To a large extent internationalization capabilities are a reflection of companies' characteristics and experience. Investing firms were described in great detail in Chapter when their importance and performance was analyzed. This chapter concentrates on some other features of investing firms and, above all, on the characteristics of foreign affiliates. The experience of Slovenian investors confirmed the basic assumptions of evolutionary models that knowledge of foreign markets and business operations is an important determinant of the development of one's international operations. Foreign partners are mostly small in size, and are often private individuals. Partnerships with big and well-known multinational corporations are exceptional. The functional orientation of foreign affiliates also confirms the sequential internationalization approach. The sales and marketing function is the first to be internationalized. The growth of foreign affiliates has been substantial in recent years, not only in their number but also in terms of their size.
