An Analysis of International Trade of Montenegro Using Statistics on the Operations of Transnational Corporations' Affiliates

Abstract

Most of the international trade today takes place through transnational corporations that have changed its structure and directions of activity. The scope of international transactions that occur within transnational corporations is increasingly replacing the classical cross-border forms of import and export of goods and services. The transition process and the opening of Montenegro towards the rest of the world has had its influence on significant inflows of foreign direct investments and the presence of a large number of companies controlled by foreign capital. If we neglected the sales data of foreign corporations' affiliates we would attain a distorted picture of the position of Montenegro in international trade. Through the analysis of the application of FATS statistics, which monitor the operations of these companies in Montenegro, we discovered the economic variables to which the foreign affiliates have made the greatest contribution. Our goal is to assess the benefits of Montenegro's participation in international trade. The focus of the work is on the calculation of the export of Montenegro through the application of this new statistical concept.