Foreign direct investments in Republic of Macedonia: an opportunity for domestic enterprisesa to participate in global supply chains
Foreign direct investments in Republic of Macedonia: an opportunity for domestic enterprisesa to participate in global supply chains

Summary/Abstract: The attraction of foreign direct investments and international cooperation are considered to be important priorities for small economies. They are desirable because of the positive effects in terms of increased employment and inflow of capital, technology, skills and knowledge in host countries. Especially important are the opportunities for building deeper, long-term relationships of cooperation and partnerships between domestic enterprises and foreign investors. Through this cooperation domestic enterprises can participate in global supply chains and ensure stabile sale and market share for their products in form of materials and semi-finished products for foreign investors. The purpose of the research is to identify the opportunity for involvement of domestic enterprises in global supply chains, through cooperation with foreign direct investors. The subject is to explain theoretically the category of foreign direct investments and their implications on domestic economy, to explain the current situation with foreign direct investments in Macedonia and to provide recommendations about their attraction and intensified involvement of domestic enterprises in global supply chains. The research is based on qualitative approach, using the methods of analysis and synthesis, induction, deduction and comparison. The research shows that foreign direct investments are important for the development of Macedonian economy, but it is necessary to take several measures to increase them and intensify the cooperation with domestic enterprises in order to exploit the full potential they offer. In this regard, the Government, the Macedonian Bank for Development Promotion, as well as the domestic enterprises play a critical role.

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