POSITION OF BOSNIA AND HERZEGOVINA ON THE INTERNATIONAL MARKET

Abstract

Intensification of international trade forced states to address the foreign policy issues in the field of international economic cooperation. In contemporary world economy and impacts of globalization, trade should be the engine of economic development. The national economy is losing, in exchange for a higher standard. This is, of course, in planetary terms, and every state and economy is to fight for its position in the international market. How to use the modern trends of the global economy for the economic development of Bosnia and Herzegovina? Success is possible only by a combination of opportunities offered by global markets, and strategy of national economic policy for achieving macroeconomic stability by strengthening the factors of economic growth based on the growth of production for export. Issues related to foreign trade deficit require creating an institutional environment for diversified and competitive export sector, through the process of the structural reforms and market liberalization. The authorities in Bosnia and Herzegovina must act through foreign trade and macroeconomic policies in the country towards economic growth, price stability, to reduce the trade deficit and revive the economy, whose subjects will be able to know and equally participate in market competition within the EU. Within the foreign policy great emphasis should be placed on avoiding or at least mitigating the negative effects of trade liberalization process, as well as the compulsory process. Liberalization increases the gap between the rich and the poor, and certainly it can be transmitted on a global level, where there is always a possibility that the global open trade marginalizes each state.