ABSTRACT
Third world multinational companies (TWMNCs) or investing abroad by firms from developing countries least developed countries (LDCs) started to attract attention back in the 1980s. This chapter compares the similarities and differences between central European transition economies' multinational companies (CEMNCs) and TWMNCs in terms of the timing of internationalization, the motivations, the type of competitive advantages and the role of the external environment. Critics of the sequential internationalization model claim that internationalization is not necessarily sequential, that 'internationalization' knowledge can be gained from other firms and by networking with others. In spite of data and other limitations, it is possible to posit that there are more similarities than differences in internationalization development between the two groups of countries' firms. Import substitution strategies of LA and CE countries de-stimulated such efforts. The huge country differences within both groups of countries make comparisons very difficult, preventing reliable generalizations.
