Abstract
Drawing upon experiential learning theory, we suggest that the informal economy context provides an interesting viewpoint from which self-initiated expatriates operate in foreign countries. Specifically, we propose that self-initiated expatriates that develop cultural intelligence through prior experiences are better able to recognize international opportunities in informal economies than those that do not possess this competence. In addition, the individual differences of risk aversion and individualism moderate the relationship between cultural intelligence and international opportunity recognition. Propositions regarding these relationships are formed for future empirical test, and implications and directions for future research are provided.