ABSTRACT

For long-term sustainability of any enterprise, it is required to observe each market separately and systematically modify business approach to prevailing conditions in each. However, adaptation to each market can be a complex affair that requires certain financial costs but ignoring distinguishing criteria leads to reduction in revenues and undermines long-term profitability. Time saving and cost-effectiveness can be achieved by application of The CAGE Distance Framework - a model that analysis all diversities between two or more countries.

Croatia did not yet utilize the benefits that European Union membership provides nor did significantly improved its international business. It is obvious that Croatia faces difficulties in the strategic approach to prospective foreign markets. Therefore, emphasis of this paper is on analysis and identification of the distinguishing factors between Croatia and the EU15 in order to facilitate and enhance cooperation among them in the future. Throughout the analysis of Croatian export from the beginning of the economic crisis, this article gives an overview of international collaboration among Croatia and the EU15 and comparative analysis by using The CAGE Distance Framework. This analysis has confirmed significant fluctuations, unexploited potential and problems of the Croatian economy in all dimensions of The CAGE model.

KEY WORDS

global market, CAGE distance framework, Croatia, The EU15, export

CLASSIFICATION