The Future Role of International Trade Risk Elimination and Investment Promotion in the Development of Economic Relations Between Azerbaijan and Latvia

Abstract After regaining its state independence, Azerbaijan got a favorable opportunity to enter the world market. The income from the country’s rich oil and gas resources served to rapidly increase the gross domestic product. Today, the government of Azerbaijan is preparing an action plan for the development of the non-oil sector in order to reduce the country’s dependence on oil and gas exports. In particular, there are some economic spheres that have a great need to be revived and have the main share in budget revenues. Although Azerbaijan has left behind most of its competitors in the viticulture and winemaking sector for many years, in the current conditions this sector relies on foreign investments for its development. Although tourism opportunities in Azerbaijan are very wide, the level of service in hotels and recreation centers is very low. Expensive prices in return for the level of service provided have a negative impact on the growth of Azerbaijan’s tourism revenues. Unfortunately, there are also serious problems in the development of the forestry and machine-building industries and wheat production in the country. Latvia has already specialized and has some experience in exporting in the listed economic sectors in Eastern Europe. The entry of Latvian investment into Azerbaijan will serve to strengthen economic relations between the two countries and maximize mutual income. In the research work, these issues will be considered and analyzed separately by economic spheres.