Eda HIDA, Erla Kadiu & Jona Bezati

This paper analyzes on how Albania is exposed from possible backdrop in the Italian Economy and because of that, how Albania is also politically disadvantaged, when seeking reciprocity with Italy. As Barry Goldwater memorably put it, “A government big enough to give you everything you want is big enough to take everything you have”. In the same time, the paper analyzes the risks arising from the dependency factor, like the unfair competition and the harm the dependency can create to other “trading” alternatives, which can become extinct for the time being. Finally, this paper analyzes on how the dependency can create in short term lower prices, which contribute to even more dependency, because this hurts the trade with other countries, reducing competition, often obliging the consumers to consume lower quality goods and in the worst case scenario, creating monopolies in numerous sectors of the economy.
Key words Dependency, Trade partner, Trade Balance, Risk, Diversification
JEL classification G11, E22, E24, H62
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