Islamic banking deines money strictly as a medium of exchange; it has no value in itself and each note is the same as another banknote of the same denomination. Because Islamic banking has recent history, not all of their instruments are still fully created and one such model is tawarruq; model known as “reverse or commodity Murabahah that operates by borrowing cash based on two separate transactions. There are two basic types; the irst type implies that an individual buys commodity from a bank, deferred, which later sold to another person or a bank for money in order to obtain the necessary liquidity. Another type is “organized tawarruq” that involves a transaction in which an individual buys commodity from Islamic bank on credit. It is a kind of standardized types such as metal or wheat. The bank purchased commodity sells to the client at a higher price with the term of payment in the future. The client hires the bank as its agent who sells commodity for cash. The result of this transactions means that the client gets the cash and bank owes funded amount plus the anticipated return. Many Islamic experts and economists express reservation under this model, considering that it achieves what Islamic banking seeks to avoid and it is the interest generated by activities of conventional banks. Although the model is acceptable from a legal point of Islamic economics, essentially in a spiritual way it isn’t, since it opens the possibility of creating a multitude of transactions without creating real value and the possibility of creating interest. The aim of this paper is to introduce the basics of tawarruq model and its functioning, to examine its acceptability in terms of Islamic economics, and thereby contribute to further discussion on the admissibility and the purpose of its use.

Islamic banking deines money strictly as a medium of exchange; it has no value in itself and each note is the same as another banknote of the same denomination. Because Islamic banking has recent history, not all of their instruments are still fully created and one such model is tawarruq; model known as “reverse or commodity Murabahah that operates by borrowing cash based on two separate transactions. There are two basic types; the irst type implies that an individual buys commodity from a bank, deferred, which later sold to another person or a bank for money in order to obtain the necessary liquidity. Another type is “organized tawarruq” that involves a transaction in which an individual buys commodity from Islamic bank on credit. It is a kind of standardized types such as metal or wheat. The bank purchased commodity sells to the client at a higher price with the term of payment in the future. The client hires the bank as its agent who sells commodity for cash. The result of this transactions means that the client gets the cash and bank owes funded amount plus the anticipated return. Many Islamic experts and economists express reservation under this model, considering that it achieves what Islamic banking seeks to avoid and it is the interest generated by activities of conventional banks. Although the model is acceptable from a legal point of Islamic economics, essentially in a spiritual way it isn’t, since it opens the possibility of creating a multitude of transactions without creating real value and the possibility of creating interest. The aim of this paper is to introduce the basics of tawarruq model and its functioning, to examine its acceptability in terms of Islamic economics, and thereby contribute to further discussion on the admissibility and the purpose of its use.

The main objective of this research is to make comparative analysis of the core business performance on the sample of a hundred small and medium enterprises in the food sector in Bosnia-Herzegovina, Croatia and Serbia. The analysis will comprise eight most important financial indicators of business operating of the enterprises in this sector by which the success of their business, with the primary use of benchmarking methodology is measured. Benchmarking methodology basically uses the Balances Scorecard model principles. On this basis, a model of the international database of over 100,000 companies from 24 countries has been created. This database has been used as a basis of comparison (benchmarking) of business performance of individual companies, and Bosnia-Herzegovina is the first country in the region that has been involved in it.The authors chose neighboring countries (Croatia and Serbia) for the comparison because Bosnia-Herzegovina has had a significant trade with them, and as BH, they underwent economic transition as well and they are, in addition to the regional, also direct competitors at the EU market. The research will be conducted with the use of different statistical methods and applicable use of SPSS software. The analysis will primarily relate to the period of 2007-2011 years. This research should determine the competitiveness of enterprises in the food sector in the three neighboring countries, and in which areas the competitiveness is most significant. The aim of the work is to, with the use of identical financial indicators, determine how the small and medium enterprises in the food sector in Bosnia-Herzegovina, Croatia and Serbia operated. In this way it will become known in which business fields the companies from the stated three countries produce the best results, but also it will be observed in which country the food industry suffered the greatest losses as a result of the global financial crisis.

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