Strategy for change of Yugoslav export structure of wood products into Italy

This paper has been made as an attempt for analytic illustration of the Italian-Yugoslav exchange of wood products on the international market. It directs attention to new tendencies in the international trade and to specific quality of such activities which strongly influence production and exchange in active branches. An analysis of the Yugoslav-Italian exchange of wood products has been given calling attention to the effects of non-price connected production factors on account of which Yugoslavia in exchange with the world and particularly with Italy has a pronounced negative export structure. The main reasons determining the existing forms of the Yugoslav-Italian exchange have been mentioned. The reasons are in a large part the result of differences in the degree of development and in the production structure in the two countries. On the basis of the analysis of the Italian market absorption and the analysis of the Yugoslav export possibilities it is suggested to change the production structure and export of wood products to Italy. The solution for the change of structure is not sought in the conventional forms of rise of export, but in the internalization of production and in the exchange and acceptance of a collaborative technology which is becoming a base in modern international trade. The collaborative technology would introduce a new aspect of trade by subprocesses of production on the basis of »just in time production« whereas the location of the subprocesses of production would be determined by VAGOR (the value added to gross output ratio) factor.