IMPACT OF GLOBALIZATION ON RETAILING IN CROATIA

Trade is one of the leading sectors of the Croatian economy, which has undergone significant changes under the influence of globalization over the last decade. According to Central Bureau of Statistics in Croatia about 16 % of all employees work in trade business, and more than a quarter of business entities are registered in this sector. Therefore the trade has a significant share in Croatian GDP creation. Globalization is considered an important factor of economic development around the world. Through development of communication technology the world has become integrated into the "global village" and a business contact itself can be accomplished in a matter of minutes. The effects of globalization on retailing in Croatia are mostly reflected in the introduction of new retailing forms, development of e-commerce, consumer protection, the introduction of space management, changes in consumer habits and the arrival of multinational trading companies on the market of Croatia. In this way, the Croatian market has become a part of a single system. Globalization has a negative effect on trade in the Republic of Croatia too, because the domestic production and retail sales of small neighborhood stores are threatened in this way. Retailing in Croatia should make an attempt to adapt to the global trends in the world and to new changes taking into account the domestic production by the principle of comparative advantage.