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Globalization in Latvia
Globalization can be defined as the “international exchange or sharing of labor force, production, ideas, knowledge, products and services across borders.” (kwymca.org) The question is when it started in Latvia. When Latvia was in USSR (1940 – 1991) there was happening quite similar processes that can be seen in nowadays globalization, because it consisted of many countries and they all had to speak one language, and it had one economical aim. But Latvia was forced to enter this union, and these united processes were happening inside of USSR’s border. Scientists think that Latvia was really involved in modern globalization processes when it got its independence second time. Doctor of economics Uldis Osis writes that USSR breakdown created high economical down fall and that Latvia after 12 years of its independence have started to develop, and enter global world. (Osis, 20)
Globalization in Latvia has some positive effects. Nowadays globalization has given new trade possibilities. Latvia in year 2004 got in to the Europe’s Union (EU), so the new trade ways were opened. From the data base of the ministry of economics it can be seen that Latvia has signed a 12 free trade agreements with 29 countries (em.gov.lv). In year 2006, countries who signed free trade agreement covered 82, 4% of Latvia’s total import and 82% of total export. In year 2006 export grew for 5 % than it was in year 2005 by statistical bureau. (data.csb.lv) Ministry of economics has already started to form the customs for a free trade with EU and has decreased customs functions.
Activity of economics in Latvia is growing and that seems interesting to foreign investors. Investment from abroad has grown for 14% more than in year 2006. (Circene ) Foreigners who invest in Baltic States evaluate them as a beneficial place for investment, because they are countries with the highest up growth. …
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