THE BRANDING OF SMALL ECONOMIES IN THE GLOBAL WORLD

Abstract

The process of globalization is a logical process of internationalization, caused by deregulation and liberalization, as well as the development of information and communication technologies. To perform an isolationist policy today is completely absurd. Therefore, the main goal of each national economy is to be engaged in international trade while retaining sovereignty and achieving sustainable development, and this is only possible if we realize that not all economic activities are qualitatively the same as the drivers of economic development, and that globalization and free trade can create an automatic economic harmony. Countries that specialize in the export of raw materials will sooner or later experience the opposite effect from economies of scale, namely declining yields. Sustainable development today is a kind of monopoly on the production of advanced goods and services, in which rich countries experience one explosion of productivity for another. In the first part of the paper, we analyze the effects that abstract theories of classical liberal economies have on the poor countries, as well as the neoliberal policies that the World Bank, the International Monetary Fund and the World Trade Organization today apply to developing countries. In the second part of the paper, we analyze examples of countries whose economic prosperity is the result of a smart and pragmatic mix of market incentives and governance. In the third part of the paper we give recommendations for the new development and trade policy of Serbia. In the last part of the paper, we point to the importance of branding as a factor in the export competitiveness of the company.