International Business Cooperation as an Opportunity to Increase Competitiveness and to Generate New Jobs: The Case of Kosovo

Headnote

Abstract:

Purpose: With this paper, we aim to show the benefits of international business cooperation in Kosovo. Design/Methodology/Approach: We do this by providing an overview of the current international business cooperation in Kosovo, the policies and procedures and the conditions available. Findings: It is recommended that businesses in Kosovo intensify business cooperation since global competition compels corporations to increase competitiveness by lowering production costs. Internationally affirmed brand corporations manage to lower production costs by applying different forms of international business cooperation with business entities in developing countries Practical Implications: One of the forms of international business cooperation is cooperation with internationally affirmed brand corporations to reduce production costs. At the same time, businesses in developing countries realize the profits for themselves and contribute to reducing the level of unemployment in their countries. Originality/Value: Given the positive aspects of the manufacturing cooperation, we believe that it is important to determine and highlight the impact on the economy in Kosovo and to recommend changes if and where necessary so as to improve benefits for the country.

Keywords: Customs Procedures, International Business Cooperation, Brands, Kosovo, Competitiveness, Business in Developing Countries.

JEL Classification: M16, F2.

Paper type: Commentary.

1. Introduction

Nowadays, global competition has intensified due to the fast pace of globalization and technology upgrades. In such circumstances, in order to increase competitiveness, they are forced to implement different forms of international business cooperation. One of the forms of international business cooperation is "manufacturing cooperation". Business Cooperation is based on the contract for the integration of production factors of the local partner with the external partner. External partners usually bring "know-how", raw materials and reproductive materials necessary for the production of certain products, while local partners engage production capacity (facilities, infrastructure, employees,) to manufacture finished products under the supervision and control of the external partners. The finished products bear the brand of the external partner, which is usually an internationally renowned brand. Therefore, in this kind of cooperation, the foreign partner usually has the obligation of placement of products on the international markets (Kukaj, 2014).

Business entities in the developed countries implement this form of cooperation aiming to reduce production costs, while entities in developing countries realize profits for themselves and contribute to the reduction of unemployment in...