Vol 12 | No. 34



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 12 | No. 34

April 2022

RETRACTION No 1.

Ljubomir Miljković
Mitja Fabjanis

Retraction No1. for Ljubomir Miljković, Mitja Fabjanis for a April 2021 paper at the International Journal of of Economics & Law:
This article has been retracted at the request of the Editor-in-Chief and and deputy director of the Economic Institute of the Russian Academy of Sciences, Mikhail Lobanov. It was established that the article plagiarized parts of Chapter 4 of the monograph of the scientific advisor Dr. Nataliya Smorodinskaya from 2015: Н.В. Смородинская ГЛОБАЛИЗИРОВАННАЯ ЭКОНОМИКА: ОТ ИЕРАРХИЙ К СЕТЕВОМУ УКЛАДУ pp. 137-175. https://economicsandlaw.org/vol-11-no-31/

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RESEARCH OF THE INFLUENCE OF CONSTITUTIVE FACTORS OF TQM ON THE ENTERPRISE PERFORMANCE

Maja Anđelković
Dragana Radosavljević
Radoljub Tomić

The focus of the enterprise strategy with TQM is maximal satisfaction of customer which can be achieved by superior quality supply and business performance which are reflected to the creating value for customers and business owners. The results of the research show a contribution of the TQM to the improvement of business performance, but this contribution varies in intensity depending on the type of performance and used criterions.
Harmonization of a quality management system by ISO 9001 standards, which are based on principles philosophy of TQM (such a case is considered here), positively affects the operational and market performance of the company, with different intensity of the impact according to the size of companies and the industry sector. The impact of certification on financial performance is obvious and it always could be proofed.
One of the most important conclusion is that companies with cerifications of QMS by the requirements of ISO 9001 standards make an effort to improve the quality of business and have a higher level of implementation of TQM, so thay create greater benefits from certification as opposed to companies which have primarily motivation leading by marketing interests and requirements which could be competition and pressure of market impacted.
The basic factors of TQM are practicaly identified in the first decade of this century, and have become the basis for research to the degree of implementation and relationships between the elements of TQM and TQM as whole, and business performance. There is no strict guideline for selecting important factors and KPIs, but their different combinations depend on the skills of the choosing by researchers. Combinations of success factors of TQM could be: customer orientation, continuous process improvement, focus on employees and teamwork, global vision of the organization (first three are directly researched in this paper).
The considered example, by the model of transport-logistic services, is positioned in the supply chain frame.
The results are presented in tabular and graphic forms.

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THE IMPACT OF COVID-19 ON (GLOBAL) SUPPLY CHAINS – SITUATION IN REPUBLIC OF SERBIA

Lazar Cvijić
Ljiljana Stanković

The topic of this paper is the impact of the pandemic on global and smaller supply chains; further, the paper deals with changes which have occurred when the transportation of goods around the world from producers to consumers is in question and how this affects business in Republic of Serbia. The authors further deal with the issue of how supply chains in Republic of Serbia react and what difficulties, challenges and innovations trade companies in Republic of Serbia face, especially large companies and distributors. To what extent it is possible in this sector to establish work from home and safety, both for employees and for customers, consumers. The current situation suggests that it is best to focus on domestic production, reduce or even eliminate dependence on sources that are considered risky.
The aim of this paper is to point out the latest trends and innovations that are happening in the supply chain; they are all caused by the pandemi. The paper also provides the answer as to what companies in Republic of Serbia are doing and what they can expect in the coming period.

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EU INSTITUTIONAL CAPACITIES IN CRITICAL INFRASTRUCTURE PROTECTION

Milijana Danevska
Vladan Stanković

Bearing in mind that the European Union is one of the key factors on the international scene when it comes to the protection of critical infrastructure (CI), it has launched a number of initiatives and research programs to protect CI. In this regard, the EU has studied various aspects of critical infrastructure protection, as well as the impact they have on damaging or destroying critical infrastructure on various segments of human activity, such as telecommunications, education, health, transport and others. The terrorist attacks in Madrid in 2004 and London in 2005 drew special public attention to the danger of attacks on critical infrastructures. Subsequently, the European Council asked the European Commission to prepare a comprehensive strategy and action plan to improve the protection of European Critical Infrastructure (ECI), which it did.

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REFLECTION OF RACISM, FASCISM AND NAZISM ON THE ROMA DURING THE SECOND WORLD WAR

Bajram Dj. Haliti

The topic of our scientific paper is racism, fascism and Nazism as retrograde political ideologies. We first included Racism, which, through a pseudo-scientific approach, classifies mankind as a so-called “human being”. “races”, citing anthropological and biological differences that it categorizes and on the basis of this positions on the harmony of superiority and inferiority strictly separating them. Starting with that, “race mixing” is unacceptable, they should live separately and those at the bottom of the scale, controlled, must be destroyed. A follower of racism is called a racist.
Racism is the name for an ideology that believes that race is the foundation of human society, that is, that an individual’s belonging to a certain race must be the basis for his social position. Racism is sometimes defined as the belief that certain races are superior or inferior to each other. Based on this belief, racism is sometimes simply defined as racial intolerance. 1
Fascism (ital. fascismo)2 was a political movement that ruled Italy from 1922 to 1943 under Benito Mussolini. The name is also used as a generic term for similar movements, emerging mainly after World War I, characterized by authoritarianism, nationalism, militarism, corporatism, anti-communism and anti-liberalism. Some historians and political scientists reject such terminology and prefer to use the terms right-wing extremism or totalitarianism3, although many consider them not precise enough.
practice of the National Socialist German Workers’ Party (Nazi Party, German Nationalsozialistische Deutsche Arbeiterpartei or NSDAP for short) led by Adolf Hitler. Nazism is also called the policy adopted and implemented by the German government in the period from 1933 to 1945, a period which in German history is still called Nazi Germany or the Third Reich. 4
The Ustashas, officially the Ustashas – the Croatian Revolutionary Movement, were a Croatian fascist ultranationalist, clerical and terrorist organization founded by Ante Pavelić in 1929 in Italy. The organization was at the head of the Independent State of Croatia, from April 1941 to May 1945.

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CHALLENGES OF PROMOTION OF HOTEL SERVICES DUE TO THE COVID-19 PANDEMIC

Adriana Jović Bogdanović
Vladana Lilić
Suzana Pajić

The changes that have taken place in the tourism sector, viewed as a whole, have had an impact on the hotel industry, from the perspective of users of hotel services and those who provide these services. In addition to the fact that tourist activities were at their minimum, and at one point almost completely stopped, there was also the fear of contracting a deadly virus. New circumstances require new strategies, both the provision of hotel services and public appearances, promoting and influencing people to start using hotel services again. In order to influence the existing and new users of hotel services, it was necessary not only to offer new services, different from the competitors, but also to convince people that their health will be preserved during their stay. These circumstances put new tasks before marketing managers, who had to apply crisis marketing in a completely new light due to the circumstances of the pandemic. This paper will present recommendations for the implementation of marketing activities in the new circumstances caused by the COVID-19 pandemic.

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CATEGORIES OF INTEGRATED PERFORMANCE MEASUREMENT SYSTEMS AND CRITICAL REVIEW

Miloš Karajović
Zoran Kaličanin
Milica Kaličanin

Limited resources are often recognized as initial factor for developing economical sciences. The same cause is looking for optimization form macro down to micro level – the companies. There is lack of financial resources, i.e., the fact is that decision makers do not have resources in unlimited amount, so the company has to follow aims and to make optimizations. In order to be able to make the best decisions, managers need adequate inputs in form of different types of reports. The question in the article is which parameters has to be followed, only financial or non-financial too, and are any of them more relevant. During last decades there are a lot of approaches developed in this field. They are presented in this place, commented and in the final, there is critical review of so far research and common practice.

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INSTITUTE OF FACTUAL EXPROPRIATION

Nedeljko Krajišnik

In this paper, the author pointed out an unusual legal phenomenon that has occurred in practice, and that is the seizure of real estate by public authorities and limiting or depriving individuals of property rights, without prior procedure prescribed by law and without compensation to the owner of the property, justifying it in the general interest. Since an individual is not able to oppose such behavior of public authorities, the only way to protect is to go to court, but there is another problem, because no law defines such a legal situation. However, the courts took over the role of interpreters of positive legal regulations and took the position that in this case it was a de facto expropriation, and through case law they defined this institute and practically equated the rights of individuals with persons whose property is expropriated in regular proceedings. most importantly, they took the position that the right to hope due to confiscated real estate does not become obsolete.

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STATISTICAL ANALYSIS OF THE VITICULTURE SECTOR OF BIH WITH REFERENCE TO FAMILY HOUSEHOLDS

Branka Marković
Ružica Đervida

Observing the historical genesis of grapevine cultivation on the territory of Bosnia and Herzegovina, it is important to emphasise that the tradition of grapevine cultivation is over 2.000 years old. In whole area, the vine was brought by the ancient Greeks. Today’s production of wine grapes, in 2021, is carried out on an area of approximately 3.700 ha, which is significantly less than in 1989, when production took place on an area of 5.722 ha. As a result of the war, the area has been reduced to today’s figures. Approximately 10.200 agricultural households are engaged in grapevine cultivation and wine production, which represents 96,21% of the total area under vines, only 3,79% of the area is owned by registered companies.
The main goal is to increase the area under vineyards, to modernize existing capacities, which ultimately results in increased wine production. In order to achieve all the stated goals, it is necessary to provide certain funds. Transition countries, to which Bosnia and Herzegovina also belongs, are based on further growth and development on the arrival of foreign investment. In countries in transition, foreign investment is the only possible factor in economic development. However, due to a number of factors that influenced poor organization and poor access, which is especially pronounced in family farms, a large number of foreign investment do not come to BiH.
The basis of the paper is related to the analysis of the actual state of the viticulture and wine production sector in BiH and the amount of wine exported to EU markets. Since the majority, which consists of agricultural households do not their own capital, i.e. they do not have their own sources of financing. By using certain statistical methods one can get an insight into the real situation that exists in the field of viticulture in BiH, with reference to family farms. According to the data obtained from the analysis, the place and position of the viticulture sector, which is the most important part of the food and agricultural area in Herzegovina, can be predicted.
Due to its great diversification, this area is very interesting for foreign investments. By applying various statistical tools, the situation in the field of viticulture can be determined and in that way it is possible to attract all interested investors.

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PUBLIC SECTOR VALUE CHAIN: IMPACT ON PRICES AND BUSINESS MANAGEMENT

Ljiljana Matavulj

The paper presents the interconnection of public sector and enterprise value chains in the field of price policy implementation, which can influence both changes in new value and the enterprise management model. The starting point was the hypothesis that the value chain system of a company is not only connected with the value chain of other companies, but also of public sector institutions.This hypothesis is tested on the examples of two public sector institutions in the Republic of Republic of Serbia – the Regulatory Agency for Electronic Communications and Postal Services and the Tax Administration, whose decisions directly affect the change in regulated sales prices of companies or adjust the profits of related parties based on transfer prices. A modified public sector value chain is also given for this example. In the case of price regulation, companies are also obliged to calculate costs based on activities (ABC – Activity Based Costing). ABC may later influence possible changes in the management of the company and application of the ABM (Activity Based Management) model. Due to the wide range of possible consequences for changes in companies, the public sector has a great responsibility in improving the design and modification of its own value chain. All together it should lead to greater efficiency and effectiveness of both the public and private sectors.

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SECURITY AND INTELLIGENCE SYSTEM OF THE REPUBLIC OF CROATIA

Goran Nikolić
Dalibor Milinković

The authors of this article, in addition to reviewing the existing intelligence and security structure of the intelligence community of the Republic of Croatia, critically analyze its development, organization, strategic directions and structure of work. They highlight the complex political context in which Croatian intelligence and security services have emerged.
They also highlight the fact that certain elements of the Croatian security and intelligence system were founded before the separation of Croatia from the SFRJ, as well as that its entire defense and security system was being created in a non-systemic and, in particular, non-institutional way.
The authors also note that serious reforms of the security sector, including secret services, were undertaken after the death of Franjo Tudjman and the victory of the opposition coalition in the 2000 parliamentary elections, when the initial and necessary prerequisites for the beginning of democratic consolidation were created.
It is concluded that the last significant changes in the organization of the security and intelligence system of the Republic of Croatia were made in 2006, when, in accordance with Croatia’s strategic commitment to rapprochement and accession to the EU and NATO, the aforementioned legal decisions were consistent with EU and NATO standards.

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PRESIDENTIAL SYSTEM OF STATE GOVERNMENT AND ITS CHARACTERISTICS

Ljupka Petrevska

This paper analyzes the characteristics of the presidential system. The subject of the analysis of the paper is the various features of the system such as the constitutional structure, the constitutional powers of the executive branch, the electoral system, the party system, the advantages and disadvantages of this system. We will look at the development of the very concept and key features of the presidential system as a form of state power that is typical of the United States. The basic feature of this system is the constitutional guarantee of the independence of the presidential government. In both the presidential and parliamentary systems, there is a fundamental difference that is reflected in the institution of government itself. There is no government in the presidential system as a collective body, because the bearer of government activity is the president himself, who is also the head of state and represents a set of powers. In order for this to exist, three conditions must be met: the head of state comes from the people, there cannot be a vote of no confidence in parliament and he runs a government of his own choosing.

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THE IMPACT OF NEW TECHNOLOGIES ON WORLD SECURITY

Ivan Petrović

The future of the security sphere at the global level is, among other things, closely linked to new technologies. These are security dilemmas, which on the one hand cover the fields of differences between civilizations, and on the other hand the theoretical parts of numerous sciences.
Global interdependence is a reality. The new environment is created both by the free flow of technologies or / and the gap between different cultures.
Resistance to globalization and the rapid spread of scientific and technological achievements are one of the reasons for endangering security at the global level. Today’s security threats require transformation and adaptation to new security causes and risks. One of the focuses has always been in the new technologies of the West.
Low- and medium-intensity conflicts are not a thing of the past. They can also be created by the rapid spread of technology. Then, at its core, they will have a causal relationship between the world economy and poverty.
The first question is whether new technologies, which undoubtedly contribute to progress, also have consequences for global security? Another question arises; is it precisely the west that is forced to defend its traditional values as a way of survival, against the dissatisfaction of various groups and individuals? In this paper, we will analyze this on the example of fuel production, without the need for crude oil.

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BUDGET FINANCING OF THE DEFENSE SYSTEM AND OPPORTUNITIES FOR IMPROVEMENT

Miodrag Radivojević
Branko Tešanović
Marija Majstorivić

Today, defense structures in the defense system of the Republic of Republic of Serbia face the need to operate according to economic principles in conditions of limited financial resources in order to realize priority tasks and preserve vitality, which refutes the old notion that defense is too important from a political, sociological and human point of view, to function economically. Management of financial resources was reduced to the distribution of available financial resources, with no interrelationships between tasks and financial plans. Also, the problem of translating strategic goals into financial plans that can be linked to budget funds was identified. This problem has been partially overcome by introducing program budgeting instead of line budgeting. Program budgeting implies that on the basis of certain plans, programs are made on the implementation of certain tasks that are set before the army, and then these programs are allocated funds, and budgeting is performed. In addition to all these improvements, budget financing is still unregulated because there is no financial-accounting system that will monitor the implementation of plans and programs in a modern way through budgeting and execution. In order to solve this problem, the introduction of the financial-accounting system is currently underway.

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THE ROLE OF TRADE SECRET IN THE INVENTION PROTECTION SYSTEM

Jovan Šarac
Vladan Stanković

The authors deal with trade secret (know-how) in a narrower, technical sense that includes various types of secret technical knowledge, skills and experience and which as such is suitable for the protection of the invention. The legislator generally regulates this institute in the context of some other issues such as technology transfer, although some states have special laws. According to the author, it is essential that the legislator recognizes this form of protection of inventions and to sanction disloyal actions, and everything else is a matter of the holder of know-how. In relation to a patent, know-how can have a completely independent status, but it can also complement it. It most often protects inventions that cannot fully satisfy the conditions of patentability, especially the invention level. In general, the level of protection that know-how provides is weaker than patent protection. There is also a risk that third parties may obtain information that is the subject of trade secret through “reversible engineering”. Based on a de facto monopoly, know-how gives an exclusive position in the market compared to competitors who do not have that knowledge. This position on the market is sometimes stronger than the patent itself. However, the author’s view is that know-how as such is not a serious alternative to the patent system. The question is whether it is realistic in the conditions of rapid development of modern technologies to preserve secrecy to the extent that it was once possible.

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SIGNIFICANCE AND NECESSITY OF UPDATING THE MATRIX OF TECHNICAL COEFFICIENTS IN INPUT-OUTPUT ANALYSIS

Slobodan Šegrt
Marija Sekulić
Andreja Arsić

Technical coefficients as products, or rather as derived categories derived from empirical data woven into cross-sectoral tables, are conditioned primarily by technical progress as well as substitutions among inputs in the process of reproduction in the national economy.
The dynamics of technical progress in the production structure of the national economy is very complex and uneven. Depending on the observed period, large differences between production sectors are possible in terms of the size of their technical progress. It depends primarily on the trend in the expansion and application of new production processes, the introduction of new raw materials and finally the substitution of a certain part of the input in production processes.
We can see that recently there has been a trend of increasing specific consumption of electricity and natural gas as a result of intensifying the mechanization of production processes and insisting on cheaper and renewable energy sources.
The demand of economic policy makers, especially Western countries, to replace the use of fossil energy sources with solar and atomic energy, as well as greater use of biogas, energy from wind farms and electricity production using tidal energy is becoming more frequent. At the same time, there is a rationalization of the consumption of certain raw materials and reproductive material as a result of the use of robotics in industry, and there are also many forms of substitution of natural materials with artificial ones.
The general trend of technical progress in the national economy must be understood as the sublimation of all individual or individual efforts and investments in changing and improving technology and production functions in the relevant segments of the national economy. Therefore, technical progress depends exclusively on the dynamics and size of investments.
Since technical coefficients show direct dependence between production sectors of a national economy, their size depends on the technological equipment of the production system and they change depending on the dynamics and size of technical progress, there is a need to constantly update the matrix of technical coefficients and the inevitable use of intersectoral models as tools for predicting their changes.
Having in mind that the priority is the use of technical coefficients in predicting the future structure of mutual relations of production sectors in the national economy, the measure by which the matrix of technical coefficients realistically reflects the macro production structure of the economy will also be a measure of objectivity in their economic analysi as well as in the prediction of further cause-consequence relationship among the sectors of production.

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WHAT MOVES SOVEREIGN BOND MARKETS? THE EFFECT OF MACROECONOMIC INDICATORS AND BUSINESS SENTIMENT ON GERMANY BOND YIELDS

Tijana Šoja
Branka Topić – Pavković

Numerous economic information and economic indicators influence the movement of the financial market and are certainly sustained by the movement of government bond yields. Previous research has confirmed the impact of economic indices on yield trends and examines whether and to what extent economic indicators such as monetary policy measures, inflation, unemployment, oil prices, confidence indicators and stock markets affect the movement of yields on government German bonds. The focus was on two-year, five-year and ten-year German bonds. The research tests several hypotheses that claim that certain economic indicators: inflation in the EMU, oil prices, Sentix confidence index, stock market affect the movement of German yields. The results show that the observed factors have a more or less pronounced impact on the observed yields and that, as such, they should be used and analyzed when monitoring yield trends in the EMU market. Yields on government bonds are strongly influenced by numerous macro data, but also trust data, which is also shown in this research. It is clear that the factors analyzed in this research (inflation, monetary policy measures, stock market, oil and confidence) have a greater or lesser impact on yield trends and should certainly always be monitored when analyzing yields. However, it is noted that the observed factors will not always have the same impact. Macroeconomic factors, especially inflation, have different effects on longer and shorter yields. Statistically significant impact on all yields, regardless of whether they are biennial, five-year or ten-year, has monetary policy measures observed through the deposit facility, confidence index and stock market.

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LIFE INSURANCE FOR BENEFIT OF A THIRD PARTY -Testamentary effects-

Nataša Petrović Tomić
Balša Kašćelan

Popularity of life insurance contract is associated with a number of funtions that this oldest modality of insurance of persons performs. In addition to the protective and saving function, life insurance is a valued product dus to its testamentary effects. The authors deal with the analysis of the life insurance contract in favor of the third party as a form that allows policyholder to appoint a certain person as a beneficiary of the sum insured and thus achieve the effect of testamentary disposition. In the first part of the paper, the authors explain the elements of the validity of the beneficiary naming clause. The second part of the paper is devoted to accepting benefits, while the third part opens legal issues on the border of inheritance and insurance law. The authors conclude that life insurance in favor of a third party ia an original and effective mechanism for achieving testamentary goals.

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ON THE POTENTIALITIES OF AN INNOVATION COUNCIL CONCEPT IN THE BELARUSIAN RESEARCH AND TECHNOLOGICAL DEVELOPMENT

Milan Vemić
Olena Hrechyshkina
Maryia Samakhavets

A major problem for institutional actors is ensuring that the current status and prospects of the Belarusian innovation policy are upgraded. An assessment of the environment for research and technological development is carried out on the basis of Belarusian official statistical indicators and State program documents. Research results indicate the need to further modernize the environment for conversion of research results into innovative and improved services and products for Belarus to become more competitive in the world market place which would elevate the country’s development level. This implies modernizing the institutional framework for stimulating innovations. The authors particularly take into consideration the accomplishment of an EU approach towards innovations and the suggested concept for the Belarusian innovation coordination model is based on introducing an “innovation council”. After analyzing and discussing innovation performance in Europe a simple correlation model demonstrates that countries with an innovation council achieved superior innovation performance. This institution could be responsible for the successful innovation performance. It coordinates policy, which is then in a better position. Findings also suggest that substantial benefits for SMEs could be ensured by developing an open innovative development and by introducing competitiveness changes at enterprise level.

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“RELATIVIZATION” OF THE PRINCIPLES OF MUTUAL RECOGNITION AND MUTUAL TRUST BETWEEN EU MEMBER STATES: THE CASE LAW OF THE EU COURT OF JUSTICE

Katarina Živanović
Siniša Dostić

The principles of mutual recognition and mutual trust between EU member states, are an irrefutable precondition for efficient and facilitated cooperation of competent judicial bodies in the field of criminal law, which is a condition for successful fight against cross-border crime. Despite the indicated importance, the realization of the stated principles cannot be done at the expense of the protection and respect of basic human rights, since the EU law is based on their proclamation, respect and protection. Achieving efficiency and facilitating judicial cooperation while respecting basic human rights was ensured by the first measure adopted in the light of the principles of mutual recognition and mutual trust. It’s about the European Arrest Warrant (EAW) established by the Framework Decision on the European Arrest Warrant (FDEAW). The FDEAW prescribes the conditions of execution, as well as the grounds for mandatory or possible non-execution of the EAW. However, in the practice of applying the EAW, the question arose of the possibility of non-execution or delaying the execution of the EAW in cases not provided for in the FDEAW. The Court of Justice of the European Union (CJEU) has found that the execution of the EAW in exceptional cases may be postponed out of the FDEAW. The stated opinion of CJEU is justified from the aspect of protection of absolute rights of individuals regulated by both EU law and the The Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR), bearing in mind that their protection, ie prohibition of inhuman and degrading treatment cannot be subordinated to efficiency and facilitation of judicial cooperation.

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