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ID number:541623
Author:
Evaluation:
Published: 24.06.2006.
Language: English
Level: College/University
Literature: 1 units
References: Used
Table of contents
Nr. Chapter  Page.
1.  SHORT INTRODUCTION TO THE COUNTRIES - MAIN INFORMATION    4
1.1.  GENERAL INFORMATION ABOUT EUROPE    5
1.2.  GENERAL INFORMATION ABOUT LATVIA    5
1.3.  GENERAL INFORMATION ABOUT SPAIN    7
2.  TRADE THEORY: INTRODUCTION TO THE MARKET    9
2.1.  Adam Smith    10
2.2.  David Ricardo    13
3.  POLITICAL SITUATION    16
4.  ECONOMIC SITUATION    20
4.1.  Analysis of the main macroeconomic values    21
4.1.1.  GDP    21
4.1.2.  Prices    22
4.1.3.  Unemployment    22
4.2.  Evolution of the economical sectors    24
4.2.1.  Latvia point    24
4.2.2.  For Spanish companies    26
4.2.3.  Foreign trade    27
5.  BILATERAL RELATIONS    41
5.1.  Commercial relations    41
5.2.  Agreements    45
6.  MULTILATERAL RELATIONS    47
6.1.  Commercial relations and agreements    47
6.1.1.  Relations with European Union    47
6.2.  Access to market: obstacles    51
6.3.  Relations with Multilateral Financial Institutions. High-priority sectors of performance    51
7.  OPPORTUNITIES OF BUSINESS FOR THE SPANISH COMPANIES    55
7.1.  Commercial opportunities    55
7.2.  Opportunities of Investment in Latvia    57
7.3.  Conclusions for Spanish investors    61
8.  BIBLIOGRAPHY    63
Extract

As we can see, there are big differences between both countries. Spain is an old European country and Latvia is a new European country. This means that, for example, Latvia is receiving more help from the rest of Europe than Spain.
The population in Spain is much bigger, by this reason Latvia may need external help, and this is the aim of this handbook, to find the different opportunities in this country.
If we compare the squared km. with population we can see that the density is much bigger in Spain (78,05 inhabit/sq. km) than in Latvia (37,44 inhabit/sq. km).
The current coin in Latvia is Lats, but is expected to join to Euro in 2008.
The languages are different between the countries, but Latvian people usually know English that can make easier the communication.
1.1. GENERAL INFORMATION ABOUT EUROPE
Europe is the second smallest continent, after Australia, covering 10,355,000 square kilometres. Is the third most populous continent and second most densely populated region in the world.
Europe’s average annual birthrate is the lowest in the world, while its expectancy is one of the longest.
It is highly urbanized.
Many Europeans speak a second language.
1.2. GENERAL INFORMATION ABOUT LATVIA

Latvia is situated in the north-east part of Europe on the coast of the Baltic Sea and borders with the two other Baltic States – Estonia and Lithuania as well as Russia and Belarus.
The territory covers 64.689 squared kilometres, 45% of which is forests; the length of its border on land is 1.862 km and its sea boarder is 494 km long. Latvia is mostly low and flat, but it features numerous lakes, rivers and dense forests of fir, pine, birch and aspen trees.
The Daugava river divides Latvia in half; south and farther west of it lie the grain-rich plains of the Kurzeme and Zemgale regions, to the east and north, plains give way to the hills and lakes of Vidzeme and Latgale. The Daugava was historically a trade route linked with Russia’s Volga and Dnieper Rivers. Today, the Daugava is a major source of hydroelectric power.
Latvia's capital city is Riga, where about one third of the country's inhabitants reside and was founded in 1201. The total number of inhabitants is 2,3 million (1 January 2004, data from the Population Register). Approximately 70% are urban and 30% are rural residents.
Due to its northern location, Latvia experiences broad seasonal variations in weather and sunlight. Midsummer days can last seventeen or more hours, while December days last no longer than six. The climate is moderate somewhat by a warm gulf stream, but in winter, snow is still common. Daytime temperatures average -4ºC but can drop to -20ºC. In summer, rain is common and the mild temperatures rarely climb above 30ºC.
The three biggest ports are in Ventspils, Rīga and Liepāja.…

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