Foreign market selection methods in a changing international trade environment: the case of Lithuanian SMEs

Abstract

International business environment is changing: globalization, trade sanctions, domestic regulations, international operations across different cultures, importance of communication, demand of sustainable supply chains and other factors force companies to diversify their markets continuously, adapt foreign market development strategies and meet market requirements at a large scale. A dilemma for SMEs is obvious as the future road in foreign market selection is uncertain: global or regional approach has to be followed. The objective of this paper is to unravel and assess market selection methods and market diversification situation as well as analyze their future strategic international trade trends in regional and global perspective. Implemented on-line survey of 450 Lithuanian vendors aimed to unlock and answer methods used in market selection, analyze market diversification situation and assess future approach towards regional and global development. The survey results reveal the perspective of Lithuanian vendors regarding their approach to use market selection methods, a demand of more formal and research based approach as well as development components versus promotion. By incorporating view on diversification, market selection methods and future market entries methods, the paper provides with a more complete view on international trade strategies development set for SMEs and their five-year vision of regional integration approach.