ABSTRACT

This chapter examines the role of the government in the case of Slovenia's internationalization process. It evaluates whether the government's reaction to internationalization and outward investment in the decade of transition was strategic or defensive, and reviews development of the institutional framework and promotional measures linked to outward investment. The chapter demonstrates how firms have evaluated the governmental contribution to outward internationalization. It analyzes the role of the institutional framework, promotional measures and the quality of institutional services relating to outward foreign direct investment (FDI). The chapter reveals firms' own suggestions for what should be done by home-country governments and governmental agencies to facilitate outward investment. Bilateral investment treaties are important in initial internationalization phases when the investment climate is not too favourable, or where there are different kinds of instability. The purposes for Slovenia concluding bilateral investment treaties with different countries have not been and are (still) not always the same.