ABSTRACT
In spite of the wars and horrors witnessed after the disintegration of the Socialist Federal Republic of Yugoslavia (SFRY), economic ties in the 'Balkan powder keg' were never completely broken off. By 1993 trade had only dropped to 14 per cent of the 1990 level, but since then it has been on a constant rise. In 2001, Slovenia realized 17 per cent of total exports in these markets. Political and diplomatic relations among successor countries are not yet at a satisfactory level and several safety, political and economic problems remain open. Business ties have been reinforced. Before independence, the SFRY market was the most important one for Slovenian companies. Location advantages of successor SFRY states that are the most attractive to Slovenian firms were mostly market related. Since Slovenia is a very small market, the approximately ten times greater population of that territory already represents a locational advantage.
