Correlation between purchasing domestic products and economic prosperity of a nation is not a new idea, in Serbia as well as in the rest of the world. While the nature of this correlation was differently interpreted, and thus the idea of stimulating purchase of domestic products was either supported or refuted, the fact is that the perception of a product as domestic or foreign has an impact on behaviour of a number of consumers.
Brands on boths sides of the border are forced to embrace the challenges brought about by globalization. Local companies are competing at the market with global competitors and, while domestic origin of a product within Serbia may (as we shall see, depending on various factors), be an advantage – it is either of no importance or even has negative impact at a foreign market. At the same time, foreign (often more accurately defined as international) companies may be faced with issues in reaching consumers whose preferences may be strongly inclined to domestic products.