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ICBEF 2012 - Conference Conclusions

WORKSHOP 1 – Finance, banking and accounting &auditing in the global economy

  1. Globalization in economic terms means: integration of national economies into the international economy, foreign direct investment, free capital flows, migration and proliferation of technological innovations. Undoubtedly, globalization as a mean of applying the doctrine of neo liberalism, is a process of transformation of local or regional phenomena into global. Globalization as a process involves a combination of economic, technological, socio cultural and political forces. Globalization brings positive trends, but as well increase the gap between poor and rich and its up to every national economy to use the benefits and try to avoid or decrease the negative trends of the globalization.
  2. The Challenges in managing public debt is more than interesting to discuss. The global public dept is figuring over 48 trillion euro , while 11 trillion and 12 trillion respectively counts for USA and Japan –one of the strongest economies in the world. Of course good public debt management might improve the situation however continuously growing public debt might be seen as a threatening bomb which is pulsing over the global economy.
  3. The analysis of the operational efficiency of the National Bank of the Republic of Macedonia, measured by the standard indicators, suggests that there is an adequate room for its increase. In this sense, focusing the less resources on so-called core activities rather than to non-core ones , is an imperative for the Macedonian Central bank. NBRM should follow the modern trend of advanced central banks in using outsourcing for the service functions and activities performed at the Central Bank, i.e. the activities that are not directly related to achieve its primary objective. Of course, decisions on using outsourcing should be based on a comprehensive cost-benefit analysis that can lead to a conclusion whether and which activities should be outsourced so to increase efficiency and performance of the National Bank of the Republic of Macedonia.
  4. Tax evasion is an issue of each economy on the world. So far there is no country which has found a good recipe to prevent tax evasion. Therefore the competences of tax control bodies must be gradually developed and increase in order to reduce the level of tax evasion. Of course the law on taxes is also not very clear which sometimes is done by purpose.
  5. Regulation proposed by the Basel Committee on Banking Supervision should not be evaluated in isolation but in the context of a comprehensive set of measures to strengthen the resilience of the financial sector and reduce the overall level of risk. Real economic activity will benefit from this increased stability and exceeding the direct costs of regulation, especially in the long run. The new regulation will have an impact on banks' liquidity management and liquidity of markets in several dimensions. There is of course a matter of gradiualizam and calibration, in order to avoid the two extremes - too abrupt adjustment and forever discharge. For central banks, the changes can be far-reaching, ranging from the transmission mechanism of monetary policy to interactions with several aspects of operational frameworks. Monetary policy continues to be implemented in an efficient way, in the new environment, in order to maintain price stability as the primary goal.
  6. The development and evolution of international banking includes structural developments, in terms of size, scope, products and processes, in terms of the legal and regulatory systems and also in terms of the business activities of banks. The central theme of this process is trade and investment in the international banking industry, the main aspects of which are cross-border trade in banking services, foreign direct investment by banks, international financial centers, capital movements and competition between banks. There is an enormous influence from the international banking in the contemporary banking era. Therefore the innovations in markets, products and processes and their rapid and widespread diffusion, are more than evident and thereby accelerating the integration of international banking.
  7. The Macedonian banking system , represented by over 75% foreign capital , despite the financial, economic and debt crisis in the neighborhood and EU region still managed to hold its stability at acceptable level and tolerant level of risk (lowest in the region). ON the other hand it is evident trend of accepting the international bank capital adequacy standards and sofistciranite tools for assessing credit and other risks, which is large benefit from presence of the international banks through their subsidiaries. Yet the fact remains that in the race for bigger profitability, foreign subsidiaries, did change the focus of their lending and introduced more attractive credit products in retail banking in order to increase the lending to citizens as less risky and more profitable in this period .This enabled them to earn over 98% of the total profits of the entire banking industry and reduce partly risky operations. This tendency, although positive in terms of foreign banks, not particularly welcome the Macedonian economy, because it reduces the support of the corporate sector which supports and encourages national economy, while lending to households only temporarily improves the living standard of the citizens without providing sustainability on long term.
  8. Comparing the crises through the history it is concluded that there are different reasons for their generation and spreading over one or more national economies. However it is concluded that the regulation and supervision over banks and other financial institutions play a crucial role in maintain financial stability of the country. Sound regulatory system over financial institutions are might detect the misconducting or early warning signs that might create future crises . The last financial crises just conform so.
  9. The growing trend of foreign direct investment in the world ,can be divided in three periods of pronounced growth: 1985-1990; 1990-2000 and 2004-2007. The last global crisis interrupted this trend. It can be concluded that the growth trend is present both in developed and in developing countries and countries in transition. However, analysis of the regional distribution of FDI shows that FDI , imports and exports are extremely concentrated in a small number of countries. Generally, the bulk of FDI are originate and ends up in developed countries . Developed countries are also major sources of FDI for developing countries, although this position gradually decreases.
  10. After the last world economic crisis becomes even more noticeable trend of increasing importance of developing countries, as importers as well as exporters of FDI. In terms of the modalities of FDI worldwide have seen greater participation of mergers and acquisitions, but further analysis shows large regional differences. Namely, as a form of FDI, acquisitions and mergers dominate in developed countries and greenfield investments in developing countries. However, the years after the crisis the share of greenfield investments worldwide far exceeded mergers and acquisitions: in 2008 greenfield investments were doubled, and in 2009 and 2010, three times larger than the value of mergers and acquisitions. Developing countries absorbed two-thirds of the value of greenfield investments and 25% of mergers and acquisitions in this period. Analysis of the dynamics of FDI by components: equity capital, reinvested earnings and loans shows a trend of increased participation of reinvested profits. This trend continued after the crisis.
  11. Reports prepared under IFRS are useful to management and investors because it reduces the cost of obtaining adequate information and planning of investments in alternative options. While the economic scenario in the world is changing daily, the authenticity of the report prepared under IFRS is something over which the investor and business people can rely on. Such reports are accurate guidelines as long as they provide unbiased financial picture of the company. But the flexibility that allow IFRS are prescribed a certain weakness. Namely, freedom of enterprise in the choice of methods for presenting certain accounting categories, provides an opportunity to financial statements show only the desired results, that leaves room for manipulation of revenues and profits, concealing certain financial problems, which ultimately may result with fraud. Because under IFRS change the application of the methods can be performed in justified cases, there is a possibility enterprises to find reasons for such changes. Strict rules should allow all companies to evaluate their reports in the same way. Reports compiled under IFRS must be based on comprehensive research, monitoring and attention to preserve their objectivity and accuracy.
  12. Accounting is the basic tool, as well as the basic language to improve economic developments. Under the effect of globalization, accounting harmonization becomes a big issue in worldwide picture. As business becomes increasingly globalized, there is clearly more pressure on accounting professionals to expand and enhance their knowledge, skills, and abilities beyond what they are currently likely to possess. Perception on accounting harmonization in rests of the world changes significantly since more and more countries set up their accounting standards. Those standards provide guidelines about application accounting system respond to International accounting standards issued by the International Accounting standard Board (IASB).
  13. Controlling cybercrime should be grounded on a wide public foundation – granting the opportunity for every citizen to receive fast and adequate reaction to signals for cyber violations over their inviolable freedoms and legal rights. Control over cybercrime should include permanent trainings, seminars, workshops and other forms of introducing the new aspects of cyber tricks. This demands additional funds. According to official data b the White House for 2010, the US government has spent 407 million USD on research and training in the field of cyber security. The fiscal 2012 provides for another 548 million USD. Therefore the range of control mechanisms may include not only finalized cybercrimes but also those in progress as well as those being planned in terms of plot, instigation and preparation activities.
  14. The role of the independent auditing profession does not exhaust to improve the quality of financial statements, but it also offers numerous information and benefits to users of the information presented it in a way that directly protects the interests of the general public Through the audit opinion increases the use value of the financial statements, and they provide greater reliability for current and potential investors, banks and other users of financial statements globally.

WORKSHOP 2 – Entrepreneurship, marketing and management in the global market

  1. Entrepreneurship and growth appear to be positively related at the level of the individual firm. Much evidence also suggests that entrepreneurship and growth are linked at the industry level. There is, for example, evidence that industries with higher rates of entry by small firms have above average rates of productivity growth and innovation. At the same time, smaller and younger firms appear to be more innovative than their larger counterparts. Many results also point to a positive relationship between economic growth, entrepreneurship and jobs creation. То improve the entrepreneurship, institutions, government, public administration and the municipalities should be organized, coordinated, with coordinated policies and effective in the definition and implementation of a new concept for efficient and rational microstate that encourages individuals in the direction of development. By reducing bureaucracy and the introduction of competition in public institutions, as well as strengthening social entrepreneurship, evolve the forces and potentials for engaging each individual, for more efficient and cheaper state and for social cohesion in society.
  2. Today's working conditions which are characterized by large and rapid change, expressed competitiveness, globalization and economic integration, daily create new challenges for small businesses and entrepreneurs that can not be overcome in a simple way. Complex conditions are forcing small businesses to adapt their strategies at daily basis and to seek new solutions if they want to maintain or increase its competitiveness, which is the basis for success or failure. Increased competitiveness must first be based on the development and application of new knowledge, skills and innovation. As a possible solution to deal successfully with the abovementioned challenges is the implementation of appropriate strategies for competitive positioning of small enterprises. Global entrepreneurship creates global entrepreneurs. They should be able to use intuitive knowledge in order to achieve and maintain competitive advantage.
  3. Development of SMEs and entrepreneurship in the Republic of Macedonia is followed by all those difficulties, problems and defined guidelines as which are part of a global movement and one long-term strategy. APRM within these processes in the past 15 years provided a position that is increasingly firm and objective and is being accepted from the various structures in Macedonia and abroad. On the other hand, the needs of entrepreneurs and SMEs are large and require a professional approach in providing various types of support for their development. In this sense, the APE are increasingly engaged in strengthening their capacity and of the business support organizations.
  4. According to the empirical results it can be seen that there is a significant association between fulfillment and autonomy which clearly confirms the hypothesis which was located at the top: the fulfillment of Macedonian business leaders have expressed influence on their staffs autonomy in Macedonian companies. In companies where leaders have expressed fulfillment, a climate will be created in which employees will face challenges independently, will put in their potentials, will be developed and will be dedicated to fully accomplishment of tasks. Such dedication will lead to greater development of the companies and thus it will become much more competitive at the market.Obtained scientific evidence shows that every Macedonian entrepreneur who wants to develop his/hers company must operate on the fulfillment development as a personal characteristic. This feature will help the development of the companies in which employees have a high degree of autonomy. This feature of the organizational climate will create companies which will fully incorporate their employees potentials and this will surely make them increasingly more competitive on the market.
  5. The autonomous regulation of relations with the founding act, reflects on the overall financial situation of the company, because it protects the same from unforeseen expenses for costly court procedures and the payment of damages in case they arise from unregulated and contentious relations.With a thorough regulation of relations in the general founding act, ie with the full advantage of the dispositive provisions offered by the LTC, it could perhaps resolve the agency problems, ie to make the management or the board of directors of the company in charge of the interests of the company. The prediction of future situations and their regulation by general corporate acts, will contribute to the establishment of a balance between the obligations or duties granted to the governing bodies and the rights which belong to them.In the end, a recommendation arising from this text is the use of legal assistance in the preparation of general corporate acts of companies, thorough processing of all matters that can be regulated by it, so the risks involved in the operation would be set at minimum level, this will lead to improvement in the decision-making in the company, and thus would spare the company from scandals and breaking the reputation it owns by engaging in judicial procedures. With this general founding act, we build the image and success of our company and build a successful entrepreneurial story.
  6. Strongly expressed interdependence between the quality of a tourism product and the competitiveness of tourism enriches the economic theory in the sphere of business analysis. There is a possibility for commercializing the project mentioned at the beginning of the paper, as the developed analytical models are universal and facilitate practical support and consultancy activities of tourism enterprises. The study enriches the knowledge of competitiveness of hotel chains of mountain resorts type and complements the existing knowledge in this area. It has become clear that mountain resorts in Bulgaria have excellent, but poorly utilized potential for development of various tourist activities.
  7. Effective strategic leadership is a factor for successful implementation of the organization's visionary goals. It includes strategic activities related to the implementation and enforcement strategies.Effective strategic leadership characterizes with nine key components: development impact without coercion, developing a vision, setting strategic direction, operation and maintenance of essential advantages, the development of human capital, maintaining an effective organizational culture, emphasizing ethical principles, setting balanced organizational control systems and analyzing and evaluating feedback information.
  8. The formulation of international marketing strategy allows coordinating marketing activities in the global market, minimizing operating costs and making rational decisions in accordance with the defined objectives. The rational response of companies to the events in the environment, allow strategic options that allow different responses according to the nature of competition. Orientation towards the global market segments requires the creation of interbrends and global marketing mix which emphasizes the availability of supplies and acceptability, at the same time a dedication towards the individual needs of significant groups of consumers. Renowned global brands provides significant market share in developing countries, whose lack of understanding of the performance of the brands are not properly accepted.Efficiency and competitiveness in the global market is determined by cost efficiency and standardization of marketing program, but it should be borne in mind that incentives for competitiveness in the global market are conditioned by the spread of activities - more product and lines. If the company is oriented towards the international market, it must build an international marketing strategy that will enable a rational approach to some segments of the international market, you need to create a marketing program that will enable business success at the targeted market segment.
  9. The fusion of economics and information technology in terms of this topic would give an integrated model of architectured business intelligence system which will include the above measures of business performance management. An improved way of representation and analysis of key-performance indicators and balanced cards with indicators from the perspective of a manager who has no great knowledge in the field of computer scienc is needed. This includes development of a system that gives the current versus the target indicators, which will enable the transformation of goals into daily action, and strategic impact in relation to those actions in the company with additional analytical capabilities. It is necessary to build a formal framework for modeling economic concepts, using words in Macedonian and English, which relate to specific industries or areas, eg. food industry, banking, insurance companies, politics and more.The barriers for running an online business in our country that existed for many years have been overcome and that made all the necessary prerequisites for the successful implementation of required transactions related to online purchase.
  10. The main future challenges for the development of electronic commerce in Macedonia remain: raising the awareness of Macedonian consumer for the benefits and safety of shopping online and overcoming the small Macedonian market as a limiting factor, through performance on foreign and / or global markets. Positive examples of successful e-commerce both at home and overseas market show that with the right approach and adequate strategy, Macedonian companies and entrepreneurs have the opportunity to start and run successful online businesses in which the central role is played by electronic commerce.Given that the barriers and overcome and all necessary conditions for conducting electronic commerce are obtained, it remains for the companies themselves to take initiatives and guided by their economic interests to engage in conquest and further development of on-line trade. Of course, the institutional support of existing and potential online merchants is need and welcomed.
  11. To recognize the competitive advantage of the textile company it is necessary to set up the value chain, in order to successfully perform in this area. To achieve this, it is necessary to analyze all the individual activities that the firm performs, and then groupe them into the already established groups of primary and additional activities that form the value chain. It is particularly important to emphasize that not all activities are a real part of the value chain. Only those activities that add value to the final product, all other actions should be eliminated or marginalized. The definition of the relevant activities that add value requires determination and analyses of their economy. The basic principle that should be observed is as follows – it is needed to isolate and analyze the activities that:
    • Have its own economy;
    • Have a strong influence on the basics of differentiation;
    • Cause significant amount of costs.
  12. Planning, designing and making e-business solution for an organization is one of the basic tasks to be set ahead the modern management. These solutions are actually projects that require a good methodological approach to ultimately be successful. E-business solutions can mean comparative advantage for organizations at the competitive market of tourist services. They are a necessary condition for a better user experience and now days they are considered to be greener solutions.And the example of a small company, the mapping of business processes can be applied, the same can be communicated with the firm's management and to approach to improvement in certain processes, in this case suggesting new features on the website. The new proposed functionalities mean changing processes in the agency, so that the web site is actually the agency itself; its operation is completely aligned with its web presence. Changing trends in the tourism business, the growth of completely sold arrangements through the Internet is a fact which should be respected and is the only way you can gain market position that would mean recognition for good service and pleasant user experience. The proposed solution can serve as a motive and reference to other travel agencies in Macedonia, but it is crucial if the process mapping activity is accepted as a method of analysis and improvement of operations.
  13. The significance of predicting demand stems from her self-regulation and allocation of resources. Namely, on the basis of quality prediction, all other plans of the company are created. Application of forecasting market demand, either domestic or foreign, should not be restricted and only available to large enterprises, but on the contrary, SMEs benefit from its implementation in the work, in terms of their financial resources which are far more limited and less unplanned. Despite expensive models and techniques for forecasting sales market, SMEs can make a choice from a range of different low-cost data sources and research techniques, which result in success, or supplying them with the necessary market information. Monitoring current and forecast future demand, significant for the companies planning process, inevitably leads to a more secure entrance into the market, thereby contributing to increased competitiveness of the companies themselves.
  14. Expected benefits from the implementation of system in the health care system in the Republic of Macedonia relate to providing a solid foundation for providing all necessary facilities, reducing costs by reducing inappropriate staff in exactly certain departments. Implementation of future accreditation processes can be accomplished for a much shorter period of time, especially when there is good communication and cooperation between the departments. Enhanced system for work processes and end results inevitably contribute to happy and healthy subjects. Financial savings are evident in health care institutions that have introduced and implemented quality system according to ISO 9001:2008 so it is allowed to divert these resources for the development and adoption of new treatment technologies that will inevitably lead to better health for all, which aactually represents the health policy objective of each country.

WORKSHOP 3 – Macroeconomic flows and sustainable development in the global world

  1. Despite the constant integration of individual communities in a growing community, the sustainable development will, until further notice to the fullest extent, still remain to be the problem of each individual community. Even within individual countries, sustainable development will remain to be the concern of smaller administrative units. However, it seems that it is not even so bad for those less developed. Namely, if we take into account the increasing pressures that occur as now already, for instance, due to climate change (loss of fertile soil, drinking water shortages, the need for reducing emissions of gases that cause climate change) it is logical to impose a range of measures that must be implemented at the local level, using local resources. Based on this, local resources become more and more important particularly on global scale. This primarily requires responsible governments, which, even within the very strict requirements of the liberal world market, should provide greater recognition of local products and the protection of local resources.
  2. At the earliest variant full liberalization of the electricity market in Macedonia is expected during 2015 which will allow all electricity market participants to trade according to market conditions. It will certainly mean greater competitiveness that will be reflected on the price of electricity. The degree of openness of the market is determined by the number of consumers who have a right to choose electricity supplier. This trend of opening electricity markets exist in all EU countries and is a consequence of the application of the Directive of the European Commission for the creation of an integrated electricity market.
  3. According to the analyzed conditions in the field of foreign direct investment it can be concluded that as a key systemic convenience of the state, which encourages investment, is the legal certainty of investors. The state will provide this through fundamental reforms in the judiciary, the promotion of arbitration or dispute resolution out of court, efficiently in providing capital creditors, through appropriate collateral of payments, up to the establishment of a legislative framework and its implementation, efficient services from the competent institutions and others. However, despite the determination to continue with economic reforms and increasing globalization, it would be very difficult for the country to survive in its efforts without an emergency turnaround in real investment and production. And to achieve this it will be very important to continue with structural reforms, ie, measures and instruments to significantly increase the microeconomic efficiency of the Macedonian economy, whose low level has been the most important reason for the overall inefficiency for a long time period.
  4. Transport is one of Europe’s strengths. European transport systems compare well in terms of efficiency with other developed regions of the World and they are an essential component of the European economy. The European countries differ both regarding the level of transport development as well as in the priorities of development plans. On the one hand are the countries of the European Union with developed transport systems, and on the other the countries in transition, that have poorer transport infrastructure and fleet as well as inefficiently organised transport. In transition countries the efforts of institutional restructuring of government management of transport infrastructure are particularly noticeable. However, the developed countries as well deal seriously with issues of privatising the transport sector and the transport infrastructure. The development and progressive completion of a Trans-European network, as the infrastructure basis for the flows of goods and the free movement of people in the Internal market, remains a vital policy objective for the EU that will bring the Western and Eastern part of the Union together and so creating the future Single European Transport Area. The adaptation of the national economy to the European market is necessary, considering the fact that the European Community is important external trade partner, and integration processes in Europe will result in long-range economic and other implications on future cooperation. The involvement of the economy of the Republic of Macedonia into integrated developments in Europe has been conditioned by the commencement of the process of economic restructuring, introduction of modern technical and technological solutions and international standards. The national economy, due to limited accumulation and need for intensified economic development and changing of unfavorable economic structure will remain liable to utilization of additional accumulation from abroad. It should be noted that external connection of the country will be based on defined communication corridors in line with international conventions and agreements, reflecting our orientation towards European and Balkan commitments towards economic and technological communications. The level of transport system development and its integration into corresponding European systems and trends will determine the directions and communications of people and products, as well as capital and information flows within the country and beyond. Development is expected to include expansion, improvement and modernization of communication subsystems in the Republic of Macedonia. Integrated combined transport for fast transfer of goods by modern methods and technologies is expected to develop in relation to the development of supportive goods transportation centres. To this end, synchronization among terminal blocks for land and air traffic should be established and demands for transit, import-export and internal goods transportation harmonized.
  5. The globalization is an economic process. It, like any other economic process, should be regulated and controlled, ie be managed. This conclusion is particularly focused towards the less developed and transitional economies. The various systems of functioning, regulation and control of the national economies do not brake the development of the globalization process, they are only different forms and ways of its realization. So far, the economic fate of small and developing countries with 3/4 depended on the major developed countries (external factor), and only with ¼ from the home state (internal factor).This is why the world economy today in the era of globalization faces the temptations that present a real challenge for national economies that threatens to become a long-term, chronic process of escalation of outnumbered problems and difficulties, not only of economic but also of political nature .. This not only concerns, but much more alerts. At stake may be driven not just the global economic system, but also the world peace. Therefore, it is necessary to regulate, control and direct the process of globalization in the direction of great. This should be a priority for all actors in the global economy, not only from altruistic reasons but also due to the growing interdependence of countries worldwide.
  6. The results from all the steps from the inclusion of the Macedonian economy in the international division of labor, based on the principles of economic globalization, basically turned out bad, but not because of the processes of globalization that are objective, but due to inadequate adjustment of the economy to them. It is an uncritical application of the liberalization of foreign economic relations, having in mind the underdevelopment, of the disrupted market relations because of the military outcome of the Yugoslav crisis and the uncertain country's long-term development strategy. In anticipation of a greater inflow of foreign funds for acceleration of the development process, the country has assumed greater responsibilities than it can bear (holding convertible status of the national currency) and the missed influx adversely affected the economic flows. The situation worsened with the long-term implementation of the stabilization policies through monetary policy strategy of targeting the exchange rate. That led to the maintenance of high interest rates and the exchange rate appreciation, thus adversely affected the investment climate in the country, and was favorable for importers. The worst is that stabilization policy is threated like a substitute for the development policy. Stabilization and development policy are not alternatives. They are complementary. There is no sustainable development without stability, but stability is violated if it does not result in satisfactory level of sustainable development. Stabilization policy is a prerequisite for the rational development policy, however, without an adequate development strategy, the stabilization policy ends with the imbalances that question the already realized stability.
  7. One of the basic preconditions for an overall development is the existence of the legislation under which the funds are a function of development, on the one hand, and on the other hand, is the existence of economic instruments to support environmental protection policy. In other words, it means spreading the range of goals that should be achieved by tax policy. The national legislation of the Republic of Macedonia from different areas treats the issues of financing environmental protection through laws that contain members duties, excise taxes, fees, etc.. Thus, the Environmental Law defines fees and customs laws regulate tariffs; both are in function of environmental protection. In the tax area, one of the laws that deserves attention is the Law on Corporate Income Tax; therein the legislator has established mechanisms to reduce the tax base in the amount of funds invested for environmental protection and nature (100% recognized amount expended for this purpose ). Corporate Income Tax Law except fiscal also implicates the fulfillment of no fiscal goals, set as environmental protection. Thus, this is one of the laws that deserve the epithets modern and progressive. In the legislation of the Republic of Macedonia a number of economic instruments to support environmental protection policy are provided. It is especially important that fiscal instruments are developed in the area of fiscal policy, as well as the laws in the area of environmental protection, especially in Environmental Law.
  8. Despite the research limitations mainly to the availability of data set, which prevented analyses in more in-depth manner towards the level of tourism sustainability in Macedonia, the paper argues its presence in modest line. Namely, although there is sustainable development in tourism in Macedonia, the research points that it is still in its stage of beginning. Moreover, the existent sustainability refers generally to ecological and socio-cultural aspect of living, but not to an adequate level of economic sustainability of tourism. As there are very modest results, the paper urges the need for undertaking measures to improve sustainability in general and specifically to improve sustainability in the field of tourism by all stakeholders involved in the tourism process in Macedonia.
  9. By taking appropriate measures globalization should be made functional and with global institutions help, new rules to be established. The world policy is required for progress and distribution, as well as the coordination of regional and national policies, and thus an appropriate institutional infrastructure, which would enable intervention actions and coordination of the various aspects of financial, economic, social policy development and a more stable world. At the long historical side, the improvement of the living conditions for all people might happen. But it is in the present circumstances a utopia when 20% of the poorest have only 1.1% of the wealth, 1.5 billion people are dying of hunger while in separate parts of the world there is a huge wealth. Our economic reality despite government efforts tends towards deterioration in manufacturing, exporting, unfavorable economic activity, growing foreign payments deficit, increased number of insolvent companies and unemployment.
  10. In the XXI century, there is much disagreement about the positive and negative aspects of globalization. However, this economic phenomenon in its essence is neither good nor bad. Further globalization is inevitable, and what remains unknown is the intensity of its action. The final results depend only on how the national economy in this overall process behavior and to adopt rules of functioning. Looking at East Asian countries that have guided the development of their own interests and principles, brings to a conclusion that the benefit of globalization is extremely large, if the subjects behave in a manner that is guided by an honest, realistic and highly rational goals.
  11. The Greenfields are set on an ever-increasing trend in the world economy, spurred by increased demand for energy and the signing of the Kyoto Protocol. Despite popular beliefs, these investments can turn out to be profitable, but the support of local governments is of critical importance to their success. At this point in time, government and other institutional support is indispensable for the justification of investing in renewable resource use. The European continent has been a leader in this area mainly due to the adoption and implementation of numerous programs of incentives and grants designed to promote and motivate both the households and the private sector to implement a green approach in their day-to-day activities and operations. Various EU institutions have supported the development of this sector with a large financial influx, thus setting the stage for a long term expansion of renewable energy use. Recent spikes in traditional energy sources and their growing price momentum will insure the need for further future investments in renewable energy projects on a global scale.
  12. International financial institutions, at the beginning of the transition period, because of the financial arrangements between the Government and the IMF had more influence on the legislative process, and thus the social dialogue and collective bargaining, ie the content of laws and collective agreements. Wages instead of KD were regulated by law. This way of limiting wage is unacceptable for a country with developed market and industrial relations, because the issue of wages is a central issue in collective bargaining in states with democratic industrial relations. Workers' rights were grossly abused by employers (non-payment of contributions to the pension, health, criteria for declaring redundancy). Therefore the union applyed appropriate methods of trade union struggle (strikes, protests, blockades, lawsuits) to employers to protect labor rights. In conditions of high unemployment, which in the Republic for more than a decade is over 30%, the union through collective bargaining have sought to establish a balance between the protection of jobs and the demand for increased wages and improved working conditions of employees in general. In such conditions, the union occupied defensive negotiating strategy, ie, it is more focused on the fight to defese jobs, rather than a salary increase. The process of accelerating the introduction of new technologies has led to significant changes in the relation between labor and capital. Rapid technological change brought with it a radical change in the status and position of employees in general. The union insisted the problem to alleviate through collective bargaining. Social dialogue (bipartite and tripartite), depending on what treatment it has in a society, greatly affect social change (positive or negative). The developed social dialogue creates a positive climate, harmony and understanding of the social partners in the creation of a common economic and social policies, while poor and underdeveloped social dialogue creates conflicts, misunderstanding and disagreement in terms of economic and social policies.
  13. In recent years global macroeconomic policy was conducted in conditions of global financial and economic crisis. The financial crisis that started in the U.S. in 2008, soon spread to the rest of the world getting dimensions of the global economic crisis. After a slowdown in global economic growth in 2008, in 2009 the World penetrated into the zone of negative economic growth rates for the first time since the Second World War.In this macroeconomic environment, central bank measures were mainly aimed at relaxation of monetary policy and increase liquidity in the economy. In addition to the measures on the side of the monetary policy, the governments of the countries also take action in order to further mitigate the negative effects of the crisis. Thus, except for the monetary policy measures that eventually secured the stability of the banking systems, the developed countries through significant fiscal stimulation tended to stop and redirect unfavorable economic trends. They significantly increased aggregate consumption, but their measures also tended to act to increase the confidence of consumers and businesses, nudging them towards consumption and investment.Most of the measures in the countries yielded results which from today's perspective meet the expectations of economic science. However, analysis of the reasons for the occurrence of the current crisis, the conduct of economic policy makers before and during the same, measures that were undertaken and the conditions in which the countries are found all over the world, has opened a new page in economic activity.
  14. A significant part of the eurozone countries that initially entered, do not fulfill some of the criteria for economic integration prior to their entry into the EMU, which indicates the priority of political versus economic criteria for certain countries before accepting their membership in EMU. Thus, from the perspective of the individual criteria, the greatest failure is with the criteria related to the amount of public debt, where countries with relatively high amounts of public debt become part of EMU. In recent years the number of countries that do not meet some of the Maastricht criteria for economic integration has increased. Such deviations are particularly pronounced among the criteria for sustainable public finances: the budget deficit and the level of public debt. Currently, a large number of countries do not meet these criteria.Countries that are facing debt crisis have significant deviations in terms of the criterion for the amount of long-term interest rates. RM definitely meets the Maastricht criteria for economic convergence, in large part due to exaggerated stabilizing nature of the macroeconomic policies implemented in the country.
  15. The average effective rate can be defined as the weighted average marginal rate on the one hand and legal nominal rate on the other hand, pointing to the fact that they are interrelated. Their relation in the expression for the average rates can be observed that the average rate would be equal to the marginal rate only if the rate of return on additional investment is equal to the cost of capital, which leads to the conclusion that for-profit investments that do not generate extra profit the marginal rate is a major determinant of the tax burden. On the other hand, as the rate of return increases, the legal rate is gaining importance in the determination of the effective tax burden of international investment projects. By differences in the amount of corporate income tax rates, it is to decide the location of the investment project, and the decision to place or country in which you declare profits for tax purposes. In this regard, states used the strategy of reducing the statutory corporate rates because it offers an opportunity to attract highly profitable foreign investment. In the world literature, the described policy is called international tax competitiveness.Series carried out reforms of the income tax in the reporting period, made Macedonia the right to bear the epithet tax most-favored country in the region and in Europe. As far as the marginal effective rates, RM had second place with lowest rate of -5.4%. The state of the average effective rates also suggests excellent comparative advantage of RM compared to most countries when it comes to attracting foreign direct investment. And in this case RM takes the second place in terms of the criterion of the lowest average rates with a rate of 11.2%. If we consider that today the country has sweeping lowest nominal rate of income tax in the amount of 10%, it can be summarized that in terms of international tax competitiveness, the country ranks with an extremely low effective tax burden.
  16. The use of corporate taxes causes distortion by increasing the cost of funding sources which can disrupt the performance of global equity markets. As a phenomenon, the distortion can be seen as a breach of the allocation of resources (capital and labor), or as a distortion of the investment or more extensive, and economic decision. Distorting effects exist for all taxes, however, are mostly expressed in the corporate income tax. Repercussions of corporate taxes on international economic efficiency are reflected in several disorders including: disorders of the choice of the sources of international capital necessary to finance investment projects, the occurrence of avoiding paying taxes through the use of high interest credit within the internal system and through the mass use of transfer pricing, favoring older and mature corporations compared to young firms, preferences towards certain forms of business organization, as well as promoting various mergers and acquisitions in the international arena.The main priority of modern tax reform in terms of this order is to establish a structure of the tax system that enables simple and easy administration, and at the same time provides facilitation and simplification of the tax treatment of companies. Indicators of corporate income tax reform in the field of promotion of international capital efficiency mainly reflected in the reduction of statutory tax rates, and in reducing the average effective tax rates. In the future, it can be expected a greater degree of integration of economic double taxation, ie integration on the basis of corporate income taxation at the level of corporation tax on the basis of personal income level of shareholder.