Due in large measure to its favourable geographical location, Latvia has historically attracted the interest of many countries, mostly in the neighbouring area. After the collapse of the Soviet Union, Latvia regained its independence and became a parliamentary republic on 21 August 1991. It was at this point that the transition from a centrally planned economy to a market economy began in Latvia. According to the European Bank of Reconstruction and Development's (EBRD, 1994) definition, transition is about institutional change involving not only the advance of the private sector, but also a fundamental transformation of the role of the state, particularly with regard to the economic, financial and legal institutions underpinning the market economy.
Sauka, A.; Welter, F. (2014): From the advanced transition environment to the international markets: key opportunities and challenges for MADARA cosmetics, in: Thanh Thai, M. T.; Turkina, E. (Hrsg.): Internationalization of Firms from Economies in Transition, Cheltenham, Edward Elgar, S. 109-122.