Investment in Yugoslavia: Western Opportunities and Difficulties

• Published in: Management International Review 1975-01, Vol.15 (1), p.51-60
• Main Authors: Milutinovich, Jugoslav S., Boseman, F. Glenn, Vrbanovich, Danica L.
• Format: Article
• Language: English
• Subjects: Business; Capital investments; Contracts; Corporations; Economics; Foreign investments; Investment return rates; Investors; Joint ventures; Socialism
• ISSN: 0025-181X

Yugoslavia, a semi-developed country with a strong growth potential, has partially opened its doors to foreign investors in order to attain a rate of economic growth consistent with the de-mands of its economic System. Evaluation of business, economic, political, and legal environ-ment as well as basic conditions for joint ventures, rights of partners, duration of joint venture, repatriation of capital of foreign partner, legal rights and guarantees, and investment opportunities in Yugoslavia vs. other countries are discussed in terms of feasibility of investing Western capital into economic activities in Yugoslavia. In addition, economic advantages and investment incentives as well as obstacles to the growth of foreign investments in Yugoslavia are detailed. It may be concluded that the foreign investor who invest for the purpose of acquiring quick and exceptionally high returns on his investment would not choose Yugoslavia. However, for the investor who seeks to expand his own business, use his own patents, technology and marketing know how, Yugoslavia offers cheap labor, abundance of raw material and electrical energy, and excellent geographie position for placement of his products not only in Yugoslavia, but also in other countries of the world and especially in the countries where Yugoslavia has the beneficiai status (East Europe, Asia, and Africa). /// La Yougoslavie, un pays semi-développé avec un potentiel de croissance élevé, a partiellement ouvert ses portes aux investisseurs étrangers afin d'atteindre un taux de croissance économique en rapport avec son système économique. L'évaluation de la situation commerciale, économique, politique et juridique ainsi que les conditions de base pour les entreprises en participation, les droits des partenaires, la durée de l'entreprise en participation, le rapatriement du capital des partenaires étrangers, les droits juridiques et les garanties, les chances d'investissement en Yougoslavie opposées à celles dans d'autres pays: tous ces facteurs sont discutés en des termes de praticabilité d'investissements de capitaux aux activités économiques de la Yougoslavie. Ensuite, les avantages économiques et les motifs stimulant l'investissement en Yougoslavie, mais aussi les obstacles qui s'opposent à l'accroissement des investissements étrangers en Yougoslavie sont traités en détail. On arrive à la conclusion que l'investisseur étranger qui cherche à placer des capitaux dans le but d'obtenir un rendement rapide et exc