FOREIGN INVESTMENTS POLICY WITH SPECIAL ATTENTION TO BOSNIA AND HERZEGOVINA
Journal Title: Acta Economica - Year 2007, Vol 5, Issue 7
Abstract
International economic relations depend on political relations between the states. They are mutually conditioned and related. Every country, aiming at development of its industry, will strive to maintain good or at least tolerant political relations. This will be very important for foreign investments in the industry of the country only if it previously establishes internal political conditions and the rule of law in accordance with approved principles of international trade law. Political and economic elements form basic conditions together with market economy, foreign capital investment and free use of profit from invested capital. Foreign investing is not a donation, but an economic interest intended to make a profit which has to be higher than invested money by recruiting the citizens of the country where the capital is invested. This reflects mutual interests of the non-residents and the state. Recruitment creates better social conditions of living and, therefore, every country is interested in creating favourable conditions for foreign investments. In this way, foreign investments provide good conditions for participation of industrial subjects which belong to different types of sovereignty on the world market and form the prices of products and industrial services in the world. This is the role of World Bank as well as European Investment Bank. Bosnia and Herzegovina has legal assumptions for foreign investments, but lacks political assumptions as a base for development of economic relations with abroad. Due to this fact, foreign investors are not interested to invest their money in industry of this country. Investments of international community are mainly concerned with elimination of consequences of war damage, which proved to be insufficient to raise the unemployment rate. This causes a great number of poor families in Bosnia and Herzegovina.
Authors and Affiliations
Rajko Kasagić, PhD
Keywords
Related Articles
- EP ID EP43624
- DOI -
- Views 270
- Downloads 0
Appraisal of financial indicators average values in joint-stock companies of Republic of Srpska
On the basis of sample composed of 593 joint-stock companies, and for 99 % confidence level we have estimated financial indicator average values for these group of enterprises. Profitability, asset efficiency and asse...
Leaden legs of recovery of Republic of Srpska economy
This paper , on the base of historical facts, tries to warn the business decision makers on the need to examine the global limiting factors that significantly affect the recovery and development of the economy of any coun...
ANALYSIS OF YIELD INVESTORS IN CAPITAL MARKET BONDS OF THE REPUBLIC OF SERBIAN
The capital market of the Republic of Srpska in the last two years was a sudden drop in prices of financial instruments that are the subject of trading with us for now the only Stock Exchange - Banja Luka Stock Exchange....
RESPONSES OF BOSNIA AND HERZEGOVINA FINANCIAL SECTOR TO FINANCIAL CRISIS AND RECESION
The paper deals with economic and financial crisis that spilled over from trading partners into Bosnia and Herzegovina. The key issue is how financial sector of the country responds to the current crisis and what measure...
Financial reporting on investments in environmental protection
Corporate reporting focused on the financial performance of the reporting entity ceased to meet the changed and ever expanding needs of investors and other accounting public. Efforts being made to respond to these new req...