Importance of Exchange Rate for SMEs Improvement and Economic Development

Boskov, Tatjana (2015) Importance of Exchange Rate for SMEs Improvement and Economic Development. In: Challenges of contemporary society, 12 Nov 2015, Skopje, Macedonia.

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Progressive globalization has created a new international environment for SME exports from developing countries. The process of world economic integration has involved a broadening and deepening of inter-relationships between international trade and foreign investment flows. Several influences – falling trade barriers, increasing technological progress, migration of technical and professional manpower and highly mobile multinational corporations (MNCs) seeking out new investments – have combined to drive globalization. The end result has been the creation of an international marketplace for goods and services that seems indifferent to national borders and state regulation. In January 2014, Macedonian government published a Programme for the Support and Development of SMEs. The Programme identifies three policy areas of major importance for SMEs: - internationalisation; -the reduction of administrative burdens, especially as regards licensing procedures; and - improved access for financing micro-firms. The aim of this paper is analyzing and giving recommendations which are necessary for small and medium enterprises to make efforts in economic development as to contribute in a way that they will make the promotion of domestic products, have organized a joint presentation on external markets, will exhibit initiatives for creation of distribution centers. In this regard, the entry of FDI in manufacturing and real exchange rate are expected to contribute for exporters in the production of high quality and distinctive products, which would lead to higher absolute prices, higher productivity and lower unit labor costs of products.

Item Type: Conference or Workshop Item (Paper)
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Tatjana Boskov
Date Deposited: 26 Jan 2016 14:49
Last Modified: 26 Jan 2016 14:49

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