But venture capitalists and entrepreneurs now say companies should look beyond their home turf and open for business in at least three European countries within their first year. If they do not, they will find it hard to attract investment and establish themselves as serious contenders. I just tell them, forget it. The only way to go is to be pan-European from the start. Aggressive American Internet companies like Yahoo already run some of Europe's most popular Web sites, and the only way to fight back is to do business on a similar scale.
European companies can only fight off global companies by becoming global companies themselves.
But if you're selling cars, computers, airline tickets or steel then everyone from the Greeks to the Swedes will go for the lowest price. Despite years of predictions that user preference was going to tilt toward the local any day now, it hasn't happened. And it isn't going to happen. Language barriers, cultural traditions and legal differences among countries can seem overwhelming. But analysts argue that despite these short-term difficulties, there are plenty of reasons to cross borders in a hurry.