ABSTRACT
Extensive, diversified cooperation is a characteristic feature of developed industry. Cooperation was one of the essential factors responsible for the expansion of production in industrially highly developed countries. In Yugoslavia's planned economy cooperation in industry is a necessity and at the same time makes quick progress possible. Problems of production cooperation in Yugoslavia would seem primarily to depend on the size and composition of industry, or to be more exact, these problems must be looked upon from the aspect of a very new industry marked by rapid quantitative and structural shifts. A quick spread of small-scale industries is hindered by certain specific problems stemming from the economic system. The higher the level of development a country has achieved, the greater the possibilities for the expansion of small-scale industries. The financial position of economic organizations will improve in proportion as the average magnitude of income is increased.
