BUILDING LINKAGE BETWEEN FDI AND EXPORTS OF MACEDONIAN PRODUCTS

Prices of domestic products on international markets are often underestimated because of the poor reputation or ranking the products with a low degree of processing. Namely, it is necessary small and medium enterprises to make efforts in this domain to contribute in a way that they will make the promotion of domestic products, have organized a joint presentation on external markets, will exhibit initiatives for creation of distribution centers. In this regard, the entry of FDI in manufacturing is expected to contribute to the production of high quality products, and distinctive products, which would lead to higher absolute prices, higher productivity and lower unit labor costs of products. This paper aims to focus on contribution for developing the strategies that could help to strengthen the SME sector. From one side it could be done through their promoting of integration into, and potential benefits from external markets. Implementation of the strategies should increase the attractiveness of the transition and developing countries for foreign investors which will improve the capacity of the SME sector. From the other side, the policies will strengthen the benefits from FDI to local economies trough facilitation of SME trade and capacity building of local SMEs to use the opportunities from the external markets.