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Author(s): Dijana Grahovac

Journal: Zbornik Radova Ekonomskog Fakulteta Istočno Sarajevo
ISSN 1840-3557

Volume: 5;
Start page: 369;
Date: 2011;
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Keywords: external trade | foreign policy | foreign trade balancе

Intensification of internationaltrade forced states to address the foreign policyissues in the field of international economiccooperation. In contemporary world economy andimpacts of globalization, trade should be the engineof economic development. The national economy islosing, in exchange for a higher standard. This is,of course, in planetary terms, and every state andeconomy is to fight for its position in theinternational market. How to use the modern trendsof the global economy for the economicdevelopment of Bosnia and Herzegovina? Successis possible only by a combination of opportunitiesoffered by global markets, and strategy of nationaleconomic policy for achieving macroeconomicstability by strengthening the factors of economicgrowth based on the growth of production forexport. Issues related to foreign trade deficitrequire creating an institutional environment fordiversified and competitive export sector, throughthe process of the structural reforms and marketliberalization. The authorities in Bosnia andHerzegovina must act through foreign trade andmacroeconomic policies in the country towardseconomic growth, price stability, to reduce thetrade deficit and revive the economy, whosesubjects will be able to know and equallyparticipate in market competition within the EU.Within the foreign policy great emphasis should beplaced on avoiding or at least mitigating thenegative effects of trade liberalization process, aswell as the compulsory process. Liberalizationincreases the gap between the rich and the poor,and certainly it can be transmitted on a globallevel, where there is always a possibility that theglobal open trade marginalizes each state.
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