VULNERABILITIES OF THESMALL OPEN ECONOMIES: THECASE OF NORTH MACEDONIA

Abstract

Small open economies have a specific geographical handicap, mainly represented in limited natural and human resources. With their openness to international economic trends, they participate in strong economic competition, along with economic giants. Under such conditions, small open economies are faced with certain weaknesses, where their vulnerability is presented, such as their formal sovereignty, or/and socio-cultural transformation. The paper will elaborate the main vulnerabilities of small open economies, based on the case of a characteristic small open economy, such as the Republic of North Macedonia.