Intensive Processes Of Retail Internationalization

Integration and globalization of world market have resulted in trade internationalization, especially in the sector of retailing. Global trade, and in particular global retail, has become more intensive. Free European market has speeded up cross border retail expansion within European Union. Retail internationalization, with increased tempo, has redefined relationships in distribution channels on a global scale. Even though the speed of retail internationalization is, without a doubt, increased, most of the retailers still make the biggest percent of their turnover in the domestic markets. Intensive processes of retail internationalization have resulted in horizontal cooperation and aligning of retailers from different European countries as well, leading to international retail alliances formations. Despite the fact that trade companies in developed countries enter new markets mostly for increase in market share and profit, internationalization of trade also represents a good developing opportunity for transitional countries. Through trade internationalization, countries in transition will ensure capital and new knowledge, which they do not have. Besides, trade internationalization will have positive impact on internationalization and development of entire economies of transitional countries. Retail sector in Bosnia and Herzegovina has to continuo its deep transformation from traditional, national distributive industry to organized and concentrated international retail. There are two main ways in retail internationalization of Bosnia and Herzegovina: Penetration of international retailers into BiH market; • Orientation of BiH retailers on international markets in closer region. Yet, more serious movement of BiH retail sector towards the internationalization can be expected after joining European economic integrations. European experience shows that more significant shift towards the internationalization within Europe appeared after formation of free European market and EU. Joining the European economic integrations for BiH would also mean a safer and easier penetration on BiH market for international companies, which would lead to more significant economic growth and increase in consumers’ potential. On a global scale, internationalization of trade should lead to more integrated and uniform development of a whole world trade.