ABSTRACT
This chapter provides the different stages of development and fragmentation of the Yugoslav economy and of the foreign economic relations of the country. It presents a standard presentation of Yugoslavia’s foreign economic relations covering the period of real functioning of the federal state. The chapter deals with features of Yugoslav foreign trade, up to the stage of acute fragmentation and the outbreak of war. It addresses the question: how are the Yugo-Slavs and other citizens of former Yugoslavia going to live within and outside Yugoslavia in the future as their mutual economic relations become external economic relations? Foreign economic relations of Yugoslavia reflected the general economic and institutional changes. Since the domestic price structure differed considerably from the structure of relative prices in foreign economies, these big price distortions made it impossible for the new exchange rate to perform its economic function properly.
