Changing international political environment especially after the II World War and 1989 had affected both political and economic geography of Eastern Europe. The collapse of Socialist Republics concluded with new independent states and liberal economies. As a result, international political economic geography of Eastern Europe and Balkans completely changed and ex-Socialist states began to develop more close economic and political relations with the West integrating European Union (EU) or Central European Free Trade Agreement (CEFTA). Macedonia is located in the heart of Balkans and surrounded by Albania, Bulgaria, Greece and Serbia, also close to important markets of Europe which like Italy, Germany, France and Turkey. Thus, this paper aims to evaluate the affects Macedonia's geographic location to her foreign trade. For this purpose firstly the effects of changing international political economy to (Yugoslavian) Macedonian economic geography and relations are assessed. Secondly Macedonian economic geography which is integrating with the world is evaluated with her potential domain and thirdly panel gravity model employed to assess the relationship between geographical distance and economic activity. Our data consist from 33 countries which are important partners of Macedonia (EU-27 countries, CEFTA members and Turkey) with 2004-2013 periods. We estimate this relationship with panel corrected standard errors (PCSE) approach. Our test results show Macedonia's geographic location (distance and common border variables) is an important determinant of her foreign trade. Also as an important variable economic size (sum GDP variable) rise is highly effective on Macedonia's foreign trade. However we couldn't find any relationship between regional membership variable (CEFTA) and foreign trade.