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Abstract

The most important goal of each country should be creation of precondition for attracting investments. Government should encourage companies to be as much as possible ambitious in achieving competitive advantage and to create environment favorable for acquiring competitive advantages. Government intervention into the market allocation could result in short-term advantages, but protective measures and interventionism reduce innovations on the long run. Therefore, government should have direct role in creation of value on the market. General business environment for investment attracting in Serbia are: (a) available resources, including developed infrastructure and human resources (b) Creation of stable macroeconomic environment, with clearly defined investment policy (c) Providing of reliable, flexible and non-discriminatory legal framework, followed by simplification of administrative procedures for establishing and running companies.

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