The subject of this research is a scientific contribution to the promotion of free trade in underdeveloped countries and developing countries, both in theoretical and practical terms. Bearing in mind that the world trade is a young scientific area that has evolved from skill through the methodology of dealing with people in organizations to forms as professions and scientific discipline. Experience shows that developing countries that have understood this and started using scientific achievements in the field of international trade business and free trade, have in practice achieved far faster development than other underdeveloped countries. The promotion of free trade in developing countries is more decades in the circles of interest for numerous economic theorists and practitioners, bearing in mind the fact that free trade is the first-rate factors of the economic development of each country. This paper presents a contribution to the analysis of the competitiveness of free trade in developing countries and persistent analysis compared to developed countries. The paper points to the importance of membership in the World Trade Organization, which entails access to the market, benefits, relief and exemption from customs duties. The starting assumption is that the competitiveness of the economy of countries that are underdeveloped or in development is at a very low level. Therefore, an increase in competition between undeveloped countries would be conditional on an increase in exports and thus developed a more favorable environment for attracting foreign direct investments. This is why the basic message of this scientific research paper is that, with cooperation with international monetary, financial and trade institutions, allow developing countries to open their markets and seize the benefits of engaging in international trade flows . Therefore, on the work of the paper a special emphasis is placed on cooperation with the World Trade Organization, the WTO. The theoretical and empirical foundation of this scientific and research work stems from the realization that investments in the development of free trade are an increasingly significant factor of growth and development of each economy. The experience shows that countries that save on these activities are the ones who are working too little for their present and not for their future. The lack of investment in the promotion of free trade is reduced in the final instance to poverty in the quality of economic development. And the quality of planting and future economic growth is based on programmed production, redistribution and allocation of quality scientific programs with calculated effects on labour productivity, savings and prosperity. Investing in improvement and cooperation with international trade institutions of the current and future leaders of undeveloped countries provides answers to evolving challenges. Improving foreign trade is one of the most cost-effective investments of an underdeveloped state. Knowledge and expertise in the field of foreign trade are the fundamental determiners of the development of the most solemn, the vreiority and the quality of human life in these countries. The entire future of one country is based on science, education and knowledge that liberate the social, economic and cultural difference.Chinese foreign direct investment in the world has long and successful tradition. Over the past decade, China has become one of the largest exporters of foreign investment in the world, including European countries. China's investment in Europe brings a number of benefits in terms of technology, know-how, improving the reputation of existing brands, establishing a logistical market in the European market. Looking from the viewpoint of the host countries, the inflow of Chinese investments brought new economic opportunities, especially in those European countries that had poor economic growth, faced with high unemployment after the Euro crisis. This paper presents global trends of Chinese foreign direct investment, the motives that have prompted Chinese investors to invest in European countries, the needs of the EU for Chinese investment, and good example of attracting Chinese investments in Serbia.
The Missing Economic Magic: The Failure of Trade Liberalization and Exchange Rate Devaluation in Pakistan, 1980–2012
