Experience shows that the question of whether or not to introduce a hypothesis is most vital in methodology, but special importance is assigned to its conceptual definition: how it originates and is discovered, its functionality, classification, and structure, and the derivation of the hypothesis and its indicators. In methodology exists an understanding that the hypothesis role is not important, but necessary for elaborate subjects of research and is a basic term that is usually expected from a PhD thesis title. It is an issue regarding whether it is possible to conduct research without the pursuance of a hypothesis, which requires the additional effort of researcher to formulate said hypothesis and adjust the paper to its operational determination of the subject of the research. There is a second opinion based on the fact that hypotheses make up the research process framework, and suggests the other elements of the research goal are not as important. This understanding directly promotes a methodology built solely on a system of hypotheses and indicators as a sufficient road to project realization. The research goal of this paper is to determine the importance of creating hypotheses with all their necessary scientific attributes by using a comparative analysis between the two above-mentioned scientific research approaches.

The aim of this paper is to elaborate the impact of the new Basel III rules of the capital position on Macedonian banks and their activities. Having in mind the characteristics of the banking system, although Basel III still isn't at force in Macedonia, this paper will analyze its impact on the CAR on banks. The financial crises showed that the bank’s resistance to crises is very fragile and two main issues were recovered that should be enhanced: the capital strength of the banking system and the liquidity position. As a result of the identified weaknesses of the regulatory framework the Basel Committee acceded to revision of the Basle II principles. The main question is will the new regulatory framework enhance the resilience of the banking system and how these changes will affect the business model of banks. Off course the effectiveness of the new framework depends on the decision of national regulators and legislation in different countries and regions. Having in mind the aim of this paper, the implications from Basel III regarding quality and quantity of the capital that is required will be analyzed on Macedonian banks on individual level.

Any company that aspires to industry leadership in 21st century must think in terms of global, not domestic market leadership. The world economy is globalizing at an accelerating pace as countries previously closed to foreign companies open up their markets, as the Internet shrinks the importance of geographic distance, and as ambitious growth - minded companies race to build stronger competitive positions in the markets of more and more countries. This paper focuses on strategy options for expanding beyond domestic boundaries and competing in the market of either a few or a great many countries. In the process of exploring these issues, we will introduce a number of correct concepts - multi country competition, global competition, profit sanctuaries, and cross - market subsidization. The paper includes section of market conditions; strategy options for entering and competing in foreign markets, the importance of locating operations in the most advantageous countries and so on.

In this study, some strategies of improving the forecasts accuracy were tested for the USA quarterly inflation rate. The classical filters and Holt Winters technique were applied for one-step-ahead forecasts on a horizon of four quarters from 1975 to 2011. Combined forecasts were made using the original SPF values and the new predictions based on filters and Holt Winters method. Some conclusions are valid for all the years for which forecasts are provided: combined predictions based on classical schemes (optimal, inverse weighted and equally weighted scheme) and the smoothed SPF forecasts using Holt Winters technique are two strategies of improving the accuracy of SPF expectations. However, the last one is the best, one reason being that the future evolution of inflation in USA is determined by recent values.

In the last 30 years has drastically increased importance of multinationals in world trade. This is partly caused by the increased integration of national economies and technical progress, especially in the field of communication. Increased number of multinational companies to put the tax administration and the company before any taxation matters more difficult, because the individual national rules for taxation of multinational companies can not be seen in isolation but must be viewed in a broad international context. The requirement to comply with laws and administrative regulations may differ from country to country creates additional problems for multinational companies. Different requirements may be associated with the additional workload for a multinational company and lead to higher costs related to compliance with these regulations than is the case with a similar company that operates exclusively under one tax sovereignty. Contentious issues, both for tax administrations and for multinational companies, resulting primarily from the practical difficulties in relation to establishing the expenditure and revenue companies or business units within the multinational companies that are taken into account in a particular country, especially when they concern jobs closely related.

Nowadays, management activity inevitably involves computer, lap top, mobile phone, Internet and IT application. Modern information availability approach is necessary component of a successful manager, especially having in mind the newest happenings on new technology market (lap top, notebook, I pack, USB, CD and other flash memories). There is no place for the old way of behaving in modern business.

This work focuses on the development of small and medium enterprises (SME) in Serbia and the effect globalization has on its growth, as well as correlation between the development of small and medium enterprises (SME) and commerce rise. The goal is to improve and create national conscience about the importance of development of the small and medium enterprises (SME). Small and medium enterprises (SME) are considered to be one of the leading guidelines of the economical growth. It stimulates private ownership and entrepreneurship skills, since this area is flexible and can quickly adjust to market changes. This is generated by employment, creation of diversified economical activity and contributes to export and trade and is the basic factors of development of competitive economy. It is obvious that the internationalization and creating global network of small and medium enterprises (SME) presents the focus for future research of development of entrepreneurship in the EU. Innovative capacities for small and medium enterprises (SME) are modest and usually represent local values. By creating international networks the obvious misbalanced between potential partners disappears, by which we open the possibilities for greater achievements and successful international partnership which provides small and medium enterprises (SME) with bigger chances in the EU system of public procurement. In contemporary conditions small and medium enterprises (SME) represent the combination of the innovative, proactive and risky behavior which exceeds national borders and tends to create certain values in the organizations, since they appear more often as the suppliers in the big production systems. Development of privately owned entrepreneurship in Serbia – country born from one of the Yugoslavia ex republics, in the present transitional economy does not differs much from the other countries in the Southeastern Europe. As society we are at the historical milestone in determining our own future. So the key question is: how can we set the concept of future development which would lead us to higher productivity of our companies, their inner and outer competitiveness by using entrepreneurship and knowledge as the most important resources. In the last few years, there has been a vast group of activities in the line of developing business environment in Serbia. SME is recognized as one of the major growth priorities. In that sense, we can say that their perspective is quite certain. We only have to bear in mind that this is a process which in many aspects requires a certain period of time.

The production of goods and services for haven consumption is a function of available factors of production among which labour and entrepreneurship are very prominent. The essence is the skill input which has to do with mental and physical attributes or resource activities and also acquired by training education or natural endowments. In this paper, the issue of health workers of all categories is discussed in terms of their marketing (demand and supply) workforce composition (population and size) the globalization factor and the ultimate effects on nations health policy issues, management structures and effectiveness. This paper presented Nigeria as the case at hand whereby, health workers at both foreign and local markets with workforce composition in globalization perspective was examined to determine among others the compositions and category, competence measurement using local and international determinants, adequacy and spread among others. This is an explorative research where secondary data was used to explain questions like do we have well trained health workers in Nigeria that measure up to international standard? Are they well remunerated? What of the level of facilities to work and right environment? What about assessment of international competitiveness among others? Some of the findings shows that Nigeria’s health workers measures among the best world – wide, highly competitive and marketable internationally, very competent despite inadequate facilities to works at home and poor working conditions but in foreign lands very exceptional (brain-drain factor). Again, the supply in terms of rate of development by training and education is grossly inadequate resulting into many patients to a particular health worker like doctors to patients’ ratio which is too high in Nigeria among other findings. It is therefore suggested that health workers skills acquisition programmes in Nigeria which is currently too expensive should be subsidized by the governments to have many of them produced to meet the health needs of Nigerians. They should equally be well remunerated with good environment to work as well as adequate facilities as applicable in the global arena. A healthy nation is a productive nation with the potential for growth and development like other great nations in the global environment.

Expected return and standard deviation are a good measure of future return and risk estimation, not only for the investments in securities, but for the whole company’s portfolio as well. This paper contributes to the understanding of the risks and returns of a company’s portfolio, consisting of financial assets and projects.

Choosing and ranking projects are complex tasks in business operations. Ranking of projects considers Multiple-Criteria Decision Making as a very popular way to support decision makers. This paper deals with proposed projects for development of the tourist resort of Gamzigrad spa in Eastern Serbia and its thermo-mineral wells. The projects are ranked by application of the ELECTRE method and by application of the AHP method, as ancillary method to determine the weights of criteria.

The negative effects of the global financial crisis shook the more or less all countries of the world. The problems caused by the global crisis in the Republic of Srpska are most pronounced in the financial and real sector of the Republic of Srpska. In the current financial crisis, the Investment Development Bank receives a key role in the financial support of Serbian economy. A stable and efficient financial system plays a role in achieving the objectives of economic expansion. FINANCIAL sector capital strengthening the financial crisis imposed as a necessity, especially for smaller banks. The problems caused by the global crisis in the Republic of Srpska expressed primarily in financial and real-sector. The main objective of this paper is to highlight the importance and role, and the advantages and disadvantages of financing the development of financial and real sectors of the global financial crisis. The paper elaborated analysis of the degree of development of financial and real sectors of Serbian, conditions in the banking sector and the role of Serbian Investment and Development Bank of the Republic of Srpska in the development of financial and real sectors of Serbian. As a result, an analysis should highlight the importance of financial support to banks in developing financial and real sectors of the global financial crisis.

This paper deals with the method of financial planning which is presented as the instrument of financial managing. It represents the basis of small business management. Since there are two aspects of control, internal and external, the emphasis is put on internal aspect, for it represents the sum of measures which the management puts into action in order to accomplish the business goals. Those measures could be defined as: the protection of property from excessive spending, providing the reliability of accounting data, consistent realization of business politics in all areas of operation, as well as grading the overall performance of sectors, employees and company management. To inform and assure the management that all sectors of small business are realizing the basic business plan and politics in the analyzed period, is considered to be the fundamental task of internal supervision. The financial control can be: preventive or subsequent. While the preventive control acquires information on business actions, the subsequent control allows us to perceive the disadvantages in determining and applying the financial politics in the previous period. Based on that knowledge, the management in finances uses the subsequent control as the basis for making business decisions regarding the future actions. Moreover, it is also being used for correcting the already undertaken actions and reducing their effects, if possible or necessary.

Amid the information available on management that impacts the status of a university, a leading role belongs to the financial and accounting information, formed in all kinds of accountability and control processes. There is a need for the creation of a reporting system, based on new organizational and methodological basis, adapted to current economic conditions.

Spatial innovation systems consist of a network of local participants and the relationship which forms the production system and through which joint forces for learning are created. In networks, economic, social, political and institutional participants possess specific ways of rule organization and a unique culture. Territorial innovation systems increase productivity, direct investments and innovation activities stimulate the development of new business forms and affect the expansion of the existing economic structure.

In this paper author considers globalization problcms, observed through prism of foreign direct investment activities in transition countries framework, with special review on economy of Republic of Serbia.

Due to fluctuations in financial assets, market risk represents the most prevalent risk in the category of financial risks. The process of market risk management includes its quantification and control. Measure that quantifies the maximum potential loss in a given period of time with a certain statistical confidence level is the value at risk, VaR. Treating financial assets prices as a time series that could be described as a random walk with drift or returns of financial assets as a white noise typically underestimates the value at risk. Back testing shows that the estimation of the risk with variance modeled as a generalized conditional autogressive heteroscedastic (GARCH) model is a reliable method for a quantification of risk.

The aim of this study is to indicate the growing importance of the active innovation policy in the contemporary economic conditions. A dominant attitude in the studies dedicated to the analysis of national innovation policies is that the national innovative capacity denotes a key determinant of the international competitiveness of the countries. The improvement of the national innovative capacity and building an adequate national innovation system are in the very epicenter of the activities of the country, and that is known as the innovation policy. In the 1960s and 1970s, the conduct of the national innovation policy was present only in the most economically developed countries, whereas during the 1980s and 1990s, it was also established in many developing countries along with the process of economic globalization. In its initial phase, the innovation policy dominantly had the elements of protection policy (primarily, patent policy). In the latter phases, its basic characteristic is merging of the science, technology, and industrial policies. Within that period, the innovation policy has acquired various expressive forms, from research and development organizing in the national laboratories and other research institutions, to the selection, winning, and applying new technologies in industry. Contemporary trends in the conduct of innovation policy refer to abandoning the top-down approach to its implementation. They underline the importance of inclusion of all interested parties in creating and implementing processes of the innovation policy.

Modernizing of livestock production, it is necessary to create a quality base for production of quality green forage. In terms dictated by climatic conditions and market trends, it is necessary to switch to a different way to make enough food to feed farm animals. Accordingly, the use of green forage conveyor, shown many advantages over the traditional way of meadow-pasture utilization system of forage. In agronomic terms, stimulates fuller utilization of nutrients in fresh form, in economic terms reducing costs the processing and storage, as well as the use of machinery in the production process. The use of this method is the most cost effective way to create economic production and conservation of plant genetic resources.

Competitiveness of enterprises in modern business conditions is based on intellectual resources. Therefore, a key challenge of knowledge economy is management, measurement and improvement of intellectual capital. Bearing in mind that it is a complex categorz, that it consists of several intangible components and values, the aim of this paper is to reveal the importance which segments of intellectual capital – identity, image and reputation have in building up, maintaining and increasing enterprise competitiveness.

Rapid changes, uncertainty and risk require a new approach to business, new business orientation and strategies. Economic relations that reproduce the transition are directly related to the present and future position of each individual, households, businesses, state and nation in the world. It is necessary to create the conditions for rapid economic development, the need to maintain economic stability, narrowing the technological and social gap between the rich and the poor, the role and influence of multinational companies in the modern world, providing higher living standards and a common understanding of human rights in the homogenized world. At the beginning of this century, developed economies of the world entered a phase of change, and from the century of information technology entered the century of knowledge, and the global economy became based on knowledge and irreplaceable factor of development. Developing and undeveloped countries are in the permanent transition period. Entrepreneurship is interesting for all economies in transition as a factor that can significantly accelerate growth and mitigate the consequences of changes in economic structures through self-employment and job creation, as well as an engine for growth. Entrepreneurship is a feature of developed economies and market economies, and it achieves the best results in such a business climate and business environment. However, entrepreneurship reaffirmed its full creativity and experience in countries that are returning to an open market economy.

The primary purpose of collecting the tax is financing the budget and financing of the prescribed State duties and its units. Taxes are the main source of budget and without them the state would not be able to operate and finance public goods and common needs, such as defense, protection of property and civil rights, public order, education, health, infrastructure and the like. Taxes on consumption are among the oldest forms of taxation. It is an indirect tax forms, which main characteristics are elasticity and the yield on the one hand, while on the other hand, they represent a regressive tax forms with distinct inflationary potential. Although these tax forms are one of the oldest, in modern tax systems they provide significant funding for the government budgets. Taxes on consumption represent forms of tax to be paid in connection with the operation of final goods and services in the country of consumption. The most important forms of consumption taxes are: sales tax, excises and customs.

The importance of using decision analysis, styles and types to resolve management problems. The process follows sequences of problem identification, alternative solution generation, conseqence analyses, solutions and implementation, evaluation, and feedback. The researcher’s job is to actively investigate problems before they appear and anticipate their importance. Managers must discover corporative resources to resolve problems before they take on greater meaning.

Labor markets of South East Europe are going through deep and significant changes typical for transitional period of economy but prolonged and deepened by economic depression which started in 2008 and continues even today. In the SEE countries the key labor market indicators were much lower in comparison with West European economies. The general idea in this paper is to compare the labor markets of the countries in the region across different variables and to discover the main characteristics of the regional labor market during economic depression. Through implementation of multivariate analysis changes in the last three years were monitored and key features were identified. On the basis of situation in the last few years we can conclude that countries of SEE have the constant and even growing problems on the labor markets characterized by large unemployment, long term unemployment and structural mismatches.

Money launderers constantly find new ways to launder money and become more efficient at it. Due to the occurrence of rapid information and communication technologies, which are incurred as a technical support to the new trends of international trade on global markets, money launderers use the same approach for the execution of the mentioned offense. Classical techniques are bypassed and replaced by more modern and much faster methods of laundering, used by launderers with the help of experts from the information technology field. It is difficult for the government agencies to identify, locate and track these modern sophisticated money laundering techniques and there is a clear need and demand for increased cooperation between institutions involved in combating money laundering and IT professionals, as experts in the information technology.

The author examines the problem of national debt. He is particularly interested in countries in transition where the national debt and budget deficit are interrelated. The problems of foreign debt servicing, export reduction, import increasing, poor balance of trade are the reasons which make a country over indebted. The author examines the causes of “capital flight”. Poor management of the economy in the countries in debt which leads to foreign loans and their non-dedicated spending are also topics of interest of the author. The author indicates the reasons for debt crisis and the strategy of national debt management.

Value-at-Risk (VaR) is one of the most popular tools used to estimate exposure to market risk and it measures the worst expected loss at a given level of confidence. This paper explains the main characheristics of the VaR concept, as well as, its advantages and limitations. Global financial turmoil changed the whole financial system worldwide and put under the question mark usefulness of market risk techniques. This paper intent to give some frameworks and opinion regarding crucial point impersonate in question: can we blame VaR and other market risk tools for financial turmoil and do they work well during financial crisis? The purpose of paper is presentation of market risk tools to risk management professionals and their possible usefulness in daily operations.

The purpose of this paper is to analyze the negative impact of “mundialisation” on the banking sector. It is evident that the global banking system has become more fragile. As a response to progressing instability in financial architecture, policy makers have become interested in better understanding of high sensitivity in the financial sector, particularly in banks. One of the basic techniques for calculating banking fragility is stress - testing. In order to estimate the potentially harmful and unpredictable effects on their transactions, banks have created stress - testing models, which turned out to be an indispensable tool in the bank supervision process. Banking regulators have started using improved stress - testing methods for estimating aggregate risk and for defining the adequate capital level in the banking sector.