International markets consist of finding and meeting the global needs of customers in a way better than the competition, both domestic and international, and co-ordinating activities within the constraints of the global environment. Spatial distance in the Republic of Croatia results in uncertainty in demand and market survival, which conditions the assumption of business risks for both producers and distributors. The key implication of agglomeration economies on tax competition models in the Republic of Croatia is that economic activities, even if they are mobile in terms of the institutional environment, can be immobile, because in order to remain competitive, companies must be located in an industrial cluster. Therefore, policy makers can tax agglomerations without necessarily compromising their tax base. Regarding the gross domestic product of the Republic of Croatia in 2020, the positive momentum that began in 2015, after six years of recession (2009.-2014.), came to a halt. Scaling the Republic of Croatia towards activities with higher technological content is the key to dynamic growth and appropriate exchange rate policies can promote this. It is very important to what extent the exchange rate regime and capital account management help to manage pro-cyclical changes in external financing of developing countries and border economies, as well as conditions of trade fluctuations in exporting countries, and open or limit space for counter cyclical macroeconomic policies. on the macroeconomic stability of the entire Republic of Croatia.