THE IMPORTANCE OF SERBIA’S TRADE POLICY IN LIBERALIZATION CONDITIONS
Radica B. Jovanović, Zdravka R. Petković, Ljiljana D. Malešević
Pages: 136-147 Published: 5 Oct 2019
Views: 196 Downloads: 39
Abstract: Trade policy should be directed towards the creation of conditions for the smooth functioning of the market and for full respect for the rules of the market game. It is a common opinion among economic policy makers that liberalization leads to more efficient allocation and use of resources, because the domestic economy is exposed to the discipline of the world market and the influence of modern technology. It is often emphasized that rapid liberalization of imports can cause balance of payments difficulties and dislocations in the economy, unless combined with effective measures to increase competitiveness and improve exports. It is recommended that the liberalization process be gradual. A radical liberalization process can have a very negative impact on the balance of payments. The biggest problem of Serbian exports is the lack of recognizable products that could be competitive in the world market with price and quality. One of the key directions of foreign trade policy in the coming period is to direct companies to new markets. Today Serbia has great experience in many segments of transition that have been taking place in other countries. Taken examples of the countries that went through the transition and became EU members, significant activities have been undertaken to improve foreign trade policy. The aim of this paper is to analyze the trade policy and the Serbian transition process, and to point out possible measures and activities that would contribute to the faster and sustainable development of the Serbian economy.
Keywords: trade policy, transition, liberalization, serbia