International Journal of Economics and Law
Pursuant to Article 14 of the Rulebook on Categorization and Ranking of Scientific Journals,
the International Journal of Economics and Law is in category M23
Volume 11 | No. 33
SCIENCE AND RESEARCH IN THE COVID-19 PANDEMIC
The crisis of the COVID-19 pandemic has affected the world on a global level in all segments of life and work. It is accompanied by other crises, such as: fires, floods, earthquakes and all the way to changes at the geostrategic level in the political, military and other segments. All of the above happened and is happening at a time when science and research have reached their highest point, because a greater number of inventions, innovations and other achievements have happened in the last few decades than in the entire history of civilization. Medical science has advanced in all its branches, ie subsystems. Despite that, there was a massive health infection with a large number of human victims. A new virus has emerged, but the old ways of preventive action and crisis management of health infections still remain.
The C-19 pandemic had a twofold impact on science and research: positive and negative.
The positive impact was manifested in the sphere of rapid invention of the vaccine, ie rapid development of diagnostics. There has been greater integration, but also mobility of experts and scientists in the exchange of scientific information, writing joint papers and joint research on the topic of the pandemic. At the time of the pandemic, reference scientific journals and studies were popularized, the number of papers and studies on the topic of the pandemic increased, some industries such as the pharmaceutical, medical equipment industry, artificial intelligence and robotics experienced progress, etc.
Nevertheless, the COVID-19 pandemic has also shown its negative sides. It took a large number of human lives. There has been a prolonged closure of economies, but also of people, with numerous restrictions, prohibitions and human rights violations at the global level. The scope of COVID – 19 and the extent of negative impact should be considered not only until its completion, but also in the long run, because after the health crisis, the following crisis will either appear or deepen: mental, economic, moral, political and other crises. They will no doubt be far more complex and long-term to address.
However, the burden of the pandemic crisis was not evenly felt by all countries at the global level, by all structures of society at the national and global level and by all economic branches. Some branches have even prospered in the pandemic, such as the pharmaceutical industry. The pandemic crisis was used to strengthen autocracy as a way of governing nations, under the pretext of caring for the population and protecting the life and health of the population.
This paper aims to point out some of the problems in the management of science and research during the pandemic, with special emphasis on medical science, and relations with alternative medicine, private health, but also with non-medical sciences, primarily management, organization and crisis management. The paper also points to the application of new strategic tools in crisis management of the C-19 pandemic, but also to a new view of science as a new productive force, and the strengthening of strategic tools in resolving the pandemic crisis.
The paper presents a critical reflection on the C-19 pandemic from the point of view of (non)-medical, ie managerial organizational science and profession. At first glance, this may be a problem, as non-medical professionals are entering the realm of a pandemic that is primarily a medical problem. However, there is no conflict here, nor can there be, because the starting point of the author is that the pandemic is half a medical and the other half a non-medical problem, and that this phenomenon should be considered in a broader context because many innovations of technological and organizational type were created by chance.
NEW MODELS OF SECURITY ANALYTICS
Security analytics is primarily a practical activity of specialized services within the national security system (army, police, security services), which aims to obtain relatively true information about a specific security problem. In practice, security analytics takes place within a process that is termed the intelligence cycle. Although more or less different, services that use security analytics have a similar approach, focusing on analytics procedures. In recent times, security analytics in the world and partly in our country is taking on the character of a practical activity based on science.
This paper is an attempt to approach security analytics from a scientific point of view. That is, to establish a general theoretical model of security analytics, which could be applied in practice. The essence of this new model of analytics is in its establishment in three spheres: doctrine; tactics, techniques and procedures and standards. These three spheres permeate the modern notion of security, ie its sectors: political, military (common security), economic, social and environmental. Thus, the security analytics model is, in fact, a matrix in which the rows are the security sectors and the columns are the analytics spheres.
COMPARATIVE ANALYSIS OF CITIZENS ‘INCOME TAX IN SERBIA AND EUROPEAN UNION COUNTRIES
With the taxes they collect from citizens and the economy, modern states provide funding for numerous state functions, without which there would be neither civilized society, nor lasting economic and social progress. Citizens’ income tax is an extremely important category of taxes in the countries of the European Union, given the significant share in GDP and total public revenues. Tax rates are different, so countries with high personal income tax rates have the largest share of this tax in GDP, as well as the largest share in total public revenues (Denmark, Sweden, Norway), while in the countries of Central and Eastern Europe, personal income tax rates are lower, which is why the share of this tax in GDP and in total public revenues is very low. The share of personal income tax revenues in GDP and in total public revenues, in Serbia, is far less than these indicators in European Union countries, and VAT is the dominant tax form, with the largest share in GDP, tax revenues and total public revenues.
THE APPLICATION OF WEBCAM EYE-TRACKING METHOD TO PREDICT CONSUMER BEHAVIOR
Mina Bogosavljevic Jovanovic
Milijanka C. Ratkovic
The application of the eye tracking method is widespread in the global FMCG industry, as it becomes one of the important approaches to study cognitive processes underlying consumer choices and decision making. The paper displays the information about the application of webcam based eye – tracking, for understanding and predicting consumer choices and thus, helping business decision to be more competitive. The hypothesis is that for pack and design studies, deeper and more reliable insights are provided applying eye tracking compared to insights gained by survey. The aim of the research is to investigate the marketers satisfaction with insights and recommendations provided when applying webcam eye tracking as implicit method compared to when using only survey, as explicit method. Obtained findings concur with a hypothesis that predicting consumer behavior is more relevant by using eye tracking methodology, for pack and redesign studies. The cost of the eye tracking study, expected to impact marketers expectation and satisfaction level, is not confirmed. The present study provides important managerial implications, confirming advantages of eye tracking approach for testing new products and redesigns.
IMPACT OF FOREIGN DIRECT INVESTMENTS ON COMPANY MARKET PERFORMANCES
The aim of this paper is to determine the effects of foreign direct investment on improving the market performance of companies. Accordingly, through the theoretical concept of the research, the factors through which the host country attracts foreign investors have been identified. The effects arising from foreign investments, both from the point of view of the host – the recipient of capital, and from the point of view of the foreign investor – the provider of capital, are also presented. In the empirical part of the research, companies operating in Bosnia and Herzegovina are observed, which have a foreign share in their capital or the entire ownership of a foreign investor. Special attention during the research was paid to the impact of foreign investments on strengthening the market performance of companies such as: increasing production, increasing sales, deepening the product range, increasing managerial and technological know-how.
MANAGEMENT IN TIMES OF CRISIS
In order for an organization to successfully deal with the crisis, it is necessary, first of all, to recognize the crisis, analyze, determine the basic problems, create a program of activities, select and motivate the team that will solve the problem, and finally, unreservedly fight the new situation. There is one very simple formula that says that every manager in crisis situations should focus on four main areas. These are: reducing costs, increasing sales, financial consolidation, and motivating people and preventing panic. The authors have tried to show in this paper that in crisis prevention, and rehabilitation of the one that has occurred, the main role is played by adequate crisis management, at the center of which is crisis management.
CONCEPTUAL-METHODOLOGICAL BASES OF COST-BENEFIT ANALYSIS IN THE EVALUATION AND RATING OF THE COST-EFFECTIVENESS OF PROJECTS
Cost-benefit analysis is a very useful tool in modern project management and decision-making, used to assess the cost-effectiveness of a project. The choice of a project and the way (model) how the most cost-effective option will be financed depend on the results of said analysis. Cost-benefit analysis, whose basic parts are financial and economic analyses,has the broadest application in researching project acceptability. It is applied in the selection of public projects and for the purpose of evaluating the private projects partly financed from state funds, through loans or foreign investments (primarily through the sale of shares and bonds), and for the purpose of evaluating projects with negative externalities as well.
In this article, financial analysis is first addressed as a comprehensive cash flow assessment which includes the analysis of the total investments, the analysis of operating costs and revenues, and the financial sustainability of a project, after which an answer to the question of the effects of the project’s market and nonmarket effects is obtained through an economic analysis, in which the conversion of accruals into current prices and the monetization of the project’s nonmarket effects are performed, based on which analysis the indirect effects of the project are included in the analysis. Finally, the social value of the project is determined within the framework of this analysis by discounting reduced costs and benefits.
AFGHANISTAN AS A STATEMENT OF DISCONTINUATION OF INTERESTS AND GOALS OF THE US NATIONAL SECURITY STRATEGY
In August 2021, the US military engagement in Afghanistan ended, after almost 20 years of conflict with the Taliban and terrorist organizations, with the engagement of allies, primarily NATO member countries. Given the participants in the war, the consequences of the war, as well as the inability to predict further events, the world is flooded with a multitude of analyzes, reactions, predictions and other observations of that war. These reviews come from officials of many countries and international organizations, as well as from scientific institutions and analysts to social networks and other media spaces.
This article is a view of American participation in the war in Afghanistan through a key document – the national security strategy, ie the national interests established in it. In that sense, 17 strategies of the USA, adopted in the period 1987-2021, were subjected to research. year, certainly heavier documents from 2001, when the direct US military engagement in Afghanistan began. The basic hypothesis of the research is: “US engagement in Afghanistan was supposed to confirm American dominance in the world after the Cold War, as one of the vital national interests established in all national security strategies, but it did not have clear goals.”
BASIC INDICATORS OF ECONOMY IN THE DOMESTIC AND INTERNATIONAL MARKET
This paper is part of the analysis of the movements of prices, production, consumption, stocks of the most important types of cereals (wheat and corn) and oilseeds (soybeans and sunflowers) both on the domestic and international markets. The main goal of the research is to use scientific methods to look at the characteristics and tendencies in improving the productivity, economy and profitability of wheat, corn, soybeans and sunflowers, first within the domestic market and then follows the analysis with special reference to the international market. We covered a time period of 5 years (from 2017 to 2021), through primary and secondary data as basic indicators of business, which includes observation and comparative analysis of the most important cereals and oilseeds. In this regard, the emphasis is placed on the prices present at Euronext, the activities of commodity exchange participants, costs, as well as the international demand for these basic agri-food products in order to achieve a competitive advantage. Based on the comparative advantage detection index – RCA, we will determine the import / export in percentage terms as the net import / export of the given products in the total turnover value of that product. There is also a review of the so-called sector analysis of market research in order to identify basic opportunities and problems, both in production and in transport. In the paper, methodological procedures are presented through tables and graphs, data for the mentioned field crops are also presented, in order to examine and evaluate the final financial result.
IMPACT OF RISK FACTOR ON THE EFFICIENCY OF INDUSTRIAL SUPPLY CHAINS
The subject of this paper is the study of industry efficiency and the risk factors that occur during supply chains. This research includes employees from four industry that operate in Republic of Serbia. The study of risk in different industries aims to provide high quality and maintenance continuity of management of supply chains, efficient management of supply changes in the companies environment. Ineffective and risky supply chain can directly affect all participants in the distribution processes. This in regard, the essence of the paper is to identify factors which influence effectiveness and risks in industrial supply chains and to classify factors in four categories and assess their impact using the Delphi method. The paper will present the guidelines for the supply chain management of risk factors in different industries.
EFFECTIVENESS OF THE PROCESS OF CONVERSION OF NON – PROSPECTIVE MILITARY PROPERTY
On the territory of European countries, there is a large number of unpromising facilities that were once used by the army. Part of the state management strives to carry out the process of conversion of these facilities for civilian needs as successfully as possible, with adequate compensation. The conversion of former military property is a very complex process that depends on many different factors. The very concept of attracting significant investments in this way, which should again contribute to the development of both local communities and the states themselves, has so far not fully resulted in the fulfillment of this development role. Conversion processes have become time-consuming, so that a large number of objects is getting delapidated and certainly loses part of their value, which makes the whole concept meaningless. Even in developed countries, where Germany stands out, the process of conversion of military property has lasted for over twenty years. The aim of this research is to provide a model for undertaking more expedient actions in the conversion of military property, based on foreign as well as one’s own experience.
IMPLICATION OF THE COVID-19 PANDEMIC ON HUMAN RESOURCE MANAGEMENT IN TOURISM AND HOSPITALITY
Adriana Jovic Bogdanovic
Human resource management is an area of business that, after decades of unfair neglect, has finally taken its rightful place. The importance of human resources is especially evident in all organizations that make contact with customers of their products or service users through their employees, as a key segment of human resources. This is the case with tourism, and therefore the management of human resources in tourism is important for the business success of organizations in this field. This is especially evident in crisis situations, such as the COVID-19 pandemic, which has hit tourism globally. The application of this concept was found to be crucial from several perspectives. First, in relation to employees who were faced with the possibility of losing their jobs, due to cancellation of tourist trips, closure of hotels and restaurants, and second, in relation to users of tourist services, who faced a new situation, which involved uncertainty and fear for their own health. It is the complexity of the situation, but also the danger to public health that has created new challenges for those involved in human resource management. New circumstances create new approaches to overcoming problems.
CONFLICT BETWEEN NET PRESENT VALUE AND INTERNAL RATE OF RETURN METHODS
In the conditions of lack of financial resources, ie the fact that decision makers do not have capital in unlimited amount, some profitable projects cannot be realized. In other words, the limited capital brings about the obligation to choose between one or more projects that are profitable, that is, it imposes the problem of ranking projects. In some situations, discount methods for assessing the economic efficiency of investment projects evaluate projects in different ways and may rank the same projects in different ways. In such cases, conflicts of different methods may occur. This paper will analyze conflict between net present value and internal rate of return methods. The net present value of the project is the value of the net cash flow in the entire period of the project, which is reduced to the present value by discounting. The internal rate of return method is a modern dynamic method of assessing the profitability of investment projects that is very often applied.
MODELS, PROBLEMS AND PERSPECTIVES OF CHARGING BY MARKETING COMMUNICATIONS AGENCIES
This paper deals with the practice of paying for services provided by marketing communications agencies and whether it is possible to assess the agency’s contribution to the client’s business and link these results to the payment model. The way of functioning of this market is presented, and by analyzing the genesis of the relationship-model and payment conditions, the authors locate the essence of the problem in the agency-client relationship and come to the current model that puts agencies at a disadvantage and lowers the level of service quality. The main problem is that there is no consensus and clear methodology on how to assess the contribution of an agency’s work to its client’s business results. Unlike digital services, where it is relatively easy to measure the achieved results, in traditional advertising the situation is much more complicated and more difficult to measure. That is why the authors favor the model that has started to be applied on a smaller scale lately, and that is payment by result. The topic is of theoretical importance for researchers and of practical importance for both parties in the described process – both for clients and agencies.
NEW BELGRADE – A PARADISE FOR RESIDENTIAL REAL ESTATE INVESTORS
The real estate market in Serbia has shown exceptional resistance to the coronavirus pandemic. At the same time, this is an extremely dynamic market, and the current period is characterized by a boom in new construction in the residential market, strong construction activity, increased supply of luxury construction, and extremely strong customer demand for this category of real estate despite unprecedentedly high prices per square meter. As such, this market deserves attention and there is a need to research this phenomenon.
The subject of this paper is the analysis of New Belgrade, the most populous and also one of the smallest municipalities in the capital of Serbia, with an emphasis on the construction of the residential real estate. In this paper, we will try to answer the question of why this municipality is the choice of foreign and domestic investors to invest in the projects and construction of luxury residential real estate, and also why the real estate built in this location is so sought after among buyers despite its high price.
STRATEGIC MANAGEMENT ACCOUNTING IN THE FUNCTION OF OPERATOR PRICE REGULATION
The paper discusses the functional relationship between strategic management accounting and the pricing of services that are under the control of the regulator. This is a part of the public sector in which the prices of services are not formed freely, because in these markets there is a significant market power of one or more participants. Therefore, there is a discriminatory attitude towards the competition but also the impact on end consumers, narrowing their choice between multiple services. Consumers are directed to certain prices, which include extra profits, although this should not be the case. This phenomenon is characteristic of the field of electronic communications and similar network sectors and can be prevented by modern methods available to strategic management accounting, primarily by different types of cost models. Prices should be based on the cost of providing services, and a strategic approach to billing in this case is provided by the regulator, as these are monopolized markets. The paper will test the hypothesis that cost models affect the reduction of service prices on the example of wholesale prices in fixed and mobile telephony in the Republic of Serbia.
EDUCATION AND TRAINING OF EMPLOYEES IN THE CONTEMPORARY CONDITIONS OF ECONOMIC DEVELOPMENT
The organization theory offers possibilities for justification of continuous innovative change of structures. The paper differentiates an implicit aspect of innovation, differences among the concepts, which are related to the employees / the product and social-cultural/procedural understanding, and to the innovative practice. For the innovation it means opening to the uncertainty, extending the development option, and supporting the organization which tries to find generate aims. The development process within the organization raises the issue of different approaches, strategies and methods in order to determine the needs, and plan the market-oriented training. Hence, the issue of needs becomes even more important and seeks for the systematic determination of the needs by discussing the matter of how the needs have been constructed. The paper analyses the activities related to education and professional development of employees, career development, and the organization development.
NON-PECUNIARY DAMAGE DONE THROUGH SOCIAL NETWORKS AND LOCAL JURISDICTION OF THE COURT
Aleksandra Nikolova Markovic
In this paper, analysis of the challenges of non-pecuniary damage done through social media networks and local jurisdiction of the court is performed, while using the method of analysis, the historical method and the inductive-deductive method. The appearance of social media and other internet platforms has significant importance for exchanging data and connecting people, but also the development of the information technology have caused many problems. The goal of many social networks is to share information between the users and to expand the number of users who have received that information. Unfortunatly, that sharing of information occurs without checking the truth of that information. The existence of social networks make it very easier to become a target of defamation, but filing a libel lawsuit and demanding a non-pecuniary damage might still be a challenge. Main challenges are identifying the person that made defamatory statement, defining the way to compensate caused non-pecuniary damage and determination of the local jurisdiction of the court.
FREE ZONES AS AN ACCELERATOR OF INTERNATIONAL AND NATIONAL ECONOMIC DEVELOPMENT
The authors emphasize the importance of free zones as a key factor of economic business progress. Through the presentation of the basic regulations, the authors point out that free zones have achieved their purpose and conditions for existence and work, compared to the most successful zones in the region and the world. The authors point out that the capacity of free zones as an accelerator of economic development is insufficiently used, and that the implementation of the experiences of developing countries would significantly increase it. In a period when our country has many development priorities, a more inventive strategy for free zones would be useful at numerous levels, starting with increasing production, technological modernization of numerous activities through increased foreign exchange inflow, exports and development of certain regions of the Republic of Serbia. The authors conclude that free zones contribute to the development of companies that operate both in the zone and around the zone, and that this ultimately contributes to increasing employment in a broader sense.
GEOINFORMATION TECHNOLOGIES IN THE FIGHT AGAINST ECOLOGICAL CRIME
The aim of this paper is to show the importance of GIS in the fight against environmental crime. At the same time, the goal is to show Structure of the geophysical cybernetic system. The models used are based either on attempts to solve inverse problems accurately, or on the use of empirical regression relations, to which the output signals of sensor systems with values of environmental parameters refer, or on the use of statistical classification procedures according to reference samples within objects in the ecological and criminogenic relationship.
OPERATIONS OF THE MINING AND METALLURGICAL COMPANY “TREPCA” 1927-1956
Jovan D. Simijanovic
Background and purpose: The mining and metallurgical company “Trepca” was one of the largest producers of lead and zinc in Europe during the middle of the 20th century. That is exactly why it significantly contributed to the then exports and profit of Yugoslavia. Ideas for founding mines, exploitation and processing of ore into metals slowly began to be realized in the years after World War I; in the late 1920s the company began operations, and during World War II, the mine and bullet processing were carried out under German occupation. The biggest increase in production happened after World War II, when the company was nationalized. Methodology: This paper is a contribution to the knowledge about the business of the mining and metallurgical plant “Trepca” until 1956. The paper seeks, primarily on the basis of primary archival sources, then on the basis of the press and relevant literature, to contribute to the knowledge regading the company’s operations.. The paper also brings research knowledge about working conditions, workers ‘rights, the activities of the workers’ council, the problems of lack of qualified workers and engineers. The paper also talks about the simultaneous phenomenon of redundancies of unskilled employees, which was one of the biggest problems in business for the company’s management during the 1950s. Conclusion: In the first years after the Second World War, the biggest problems in the production and business of “Trepca” were caused by insufficient and poor infrastructure. Working conditions in the first post-war years in the Trepca mines were extremely poor. Until 1951, a huge amount of work was done manually. There were not enough tools, machines, excavators, drills. Also a big problem was the lack of spare parts for machines and tools. Initially, the production was mostly based on numerous workers. A large number of working hours of numerous workers tried to compensate for the lack of tools and mechanization. Over time and thanks to the increase in production, the need for skilled workers and engineers grew. On the other hand, there was the problem of overstaffing in jobs that did not require trained staff at the time. Thanks, above all, to the demand on the world market and the competitive price of its products, “Trepca” became one of the most important exporters in Yugoslavia by the mid-fifties of the twentieth century.
OWNERSHIP STRUCTURE AND CORPORATE FINANCIAL PERFORMANCE
Capital structure and links with business performance is a very interesting research topic, especially for transition economies in which state-owned companies continue to play an important role. Previous research indicates that sometimes better business performance has private-owned companies and sometimes state-owned companies. Namely, research results are often mixed.
Considering the available literature it is noted that the relationship between company ownership structure and business performance has not been sufficiently explored in domestic circumstances. This study examines the business performance of companies in B&H ie company that makes the SASX10 index.
The subject of this paper is to examine the ownership structure of the company and financial performance, in the context of companies operating in transition, while the aim is to examine whether there is a link between the ownership structure and business results. The research focuses is on the indicators of return on capital, return on assets, earnings per share, net profit and indebtedness. The observed business period of the analyzed companies is from 2012 to 2020. Two hypotheses are set. The first claims that there is a statistically significant difference in the performance of state-owned and private companies, while the second hypothesis claims that private companies are more profitable than state-owned ones. The hypothesis are tested using a statistical t-test. The results show that there is a statistically significant difference in the business results of companies depending on ownership structure. The results, also, show that private companies use available resources more efficiently but these companies usually realize lower net profit compare to state-owned companies.
EUROPEAN UNION LEGISLATIVE RESPONSE TO THE PROBLEM OF TERRORISM
In this paper the author defines terrorism as the biggest threat to the security of European Union and analyzes destructive activities of terrorist organizations on the territory of Western European countries in XX century. Until recently, European Union had no legislation that clearly defined the term of terrorism, while only a small number of Member States had incomplete provisions that differed from one country to another. Therefore, European officials began to work on adoption of binding regulations for all Member States, which basically means that the problem of terrorism is now treated equally throughout the territory of the European Union. That is why the latter has won the epithet of one of the most active fighters against terrorism in XXI century by adopting documents in form of Strategies, Directives or Action Plans.
INVESTIGATION OF PROOF OF ONTOLOGICAL FOUNDATIONS OF AN INTERNATIONAL CURRENCY: EVIDENCE FROM THE EVOLUTION OF THE EURO
This paper is not mainly concerned with epistemology. The formalism of international financial linkages, currency unions and monetary stability produce results that are in agreement with theory with great precision. Economic theory now shows how to predict and control the behavior of financial markets and monetary policy including that of the euro experience. Consequently, a broad spectrum of practical monetary innovations addressed the global financial and sovereign debt crises of 2007-2009 and the still lingering Covid-19 crisis. This research will not study extensively how we attain our knowledge of international currencies and what recommendations arise out of theory. We discuss the extent to which an epistemological currency interpretation functions in euro reality and discover its ontological ground. We extend this approach to prove that the absence of a central state and fiscal inconsistencies among others challenges were not an obstacle in the development of the euro. Research results are in good agreement with Mundell’s concepts and there is unequivocal evidence that the euro has evolved into a major international currency. Finally, we discuss briefly the extension of our results to potential challenges.
BOOK REVIEW OF “EMPLOYEE ENGAGEMENT WITH ORGANIZATIONAL BEHAVIOR AND HUMAN RESOURCE MANAGEMENT”, JELENA LUKIC NIKOLIC
Review of the book: Lukic Nikolic, Jelena (2021). Employee Engagement with Organizational Behavior and Human Resource Management. Belgrade: High School of Modern Business, ISBN 978-86-87677-25-8