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Contemporary trade flows increasingly take place via foreign direct investment flows, consequently we can no longer analyze them only classically, and through the prism of the existing methodology and statistic coverage. Therefore, the purpose of the paper is to point out the need for the new approach to trade flows and their coverage. The research has led to the setting up of a proposal for the new trade coverage, which, by including the primary trading channel, complements the existing, classic approach to trade flows and leads to more realistic trade picture. Only a real picture of trade flows may be adequate guidance to the economic and trade policy makers of the country in conducting these policies and making adequate strategic trade decisions.

The financial sector is characterised by numerous changes that affect the changes in the institutional structure of functioning of the financial system, as well as the choice of funding of business entities. This has resulted in the fact that in contemporary business conditions, financing of economic development become a complex area of research. Local development planning on the basis of public revenues is a weak base for the rapid development of local governments. Therefore, it is necessary to supplement the budget financing by attracting private capital for the construction of public goods and improving the quality of public services. In this regard, the objective of this paper is to point to alternative ways of borrowing, both from domestic and international sources of funding, as well as to the possibilities for their use by the local governments. Bearing in mind the defined objective, the paper discusses the possible external sources of funding of local governments, such as loans from commercial banks and other financial institutions, and municipal bonds. In order to evaluate the possibilities for successful development of local governments, the paper points to the possible solutions to financing projects of public importance in the practice of Serbia.