It is often argued that the process of globalization has mainly favoured large-scale multinational companies which are able to organize their business efficiently within internal hierarchies. However, globalization has not only pushed cross-border intra-finn transactions but also other arrangements among firms such as licensing or subcontracting that fall short of ownership involvements. This opens up new opportunities for small and medium sized enterprises, too. The paper provides a general introduction to small and medium sized enterprises' international business. It reviews the more recent theoretical discussion and presents the results of several empirical studies. Finally, it explores the implications for further research.