Raising awareness about global limitation of natural resources, along with intensive development of new technologies and escalating pollution of our planet, has led to the intensification of market competition both between global multinational competitors, and among the states. Beginning of the 21st century was distinguished by market competition between countries in respect to the creation and improvement of national brands. Their goal is to promote themselves, primarily in the international community, through national branding, tending to change and improve national brand and reputation after this manner. Consequently, in the economic and commercial sphere the greatest effects of building a national brand are expected with positive impact on increasing sales and exports, foreign direct investment, access to limited resources, the development of tourism, as well as improvement of political position and diplomatic relations. National branding, as a very important competitive tool in achieving economic goals, is based on the finding, building and presenting a unique, attractive and interesting value package. Hence, the aim of this study is to promote the importance of the national branding process and analyze the position of Serbia as a national brand worldwide. The emphasis in this paper is given to several crucial areas such as: national branding concepts, national identity as the foundation of national brand, positioning of Serbia on the world map of national brands and tools for improving national brand of Serbia
