STRANA ULAGANJA I NJIHOV ZNAČAJ ZA EKONOMSKI RAZVOJ BOSNE I HERCEGOVINE/ FOREIGN INVESTMENTS AND THEIR SIGNIFICANCE FOR ECONOMIC DEVELOPMENT OF BOSNIA AND HERZEGOVINA

Abstract

The main prerequisite for successful economic development of every economy in the modern business environment implies availability of sufficient financial resources with which would be financed the successful and sustained economic growth and development. Having in mind that the financial capital is very limited resource, and that many countries do not have it in sufficient quantities, in the lack of foreign investment, they are forced to seek the most favorable terms of financing its economy. In case that the amount of foreign investments is insufficient, in that situation, specific countries must cope in other ways that are always uncertain and usually very expensive. The economy of Bosnia and Herzegovina, loaded with many problems, belongs to a group of similar economies that are not economically developed and as such are not capable to provide even the minimum of their liquidity, without foreign investments, including grants. Considering the difficult economic
situation, it is easy to conclude which is the importance of a sufficient volume of foreign investment in all sectors of the economy for the functioning and existence of the entire economic system of Bosnia and Herzegovina.