The objective of the study was to analyse the transborder relationships of co‐operation and competition among economic entities operating in the Polish‐German borderland. The analysis concentrated primarily on the internationalisation of economic activity, the perceived strength of co‐operation, the actual competitive pressure, and the identification of the dominant character of transborder relationships. The analysis was conducted in the Polish‐German borderland in 2011. The study was based on a questionnaire survey (600 firms: 300 on the Polish side and 300 on the German side of the border). The research revealed that the predominant type of relationship among companies was that of co‐operation. However, the perceived importance of transborder relationships was generally low. Moreover, it can be stated that the vast majority of the businesses were operating without considering the context of the border.