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Seminar paper from the year 2006 in the subject Economics - International Economic Relations, grade: 1,00, Saint Mary's University (Economics), course: Course: Development Economics, language: English, abstract: The paper focuses on international trade and foreign aid in relationship with economic development comparing two former Soviet Union states: Latvia and Georgia. Communism divided the economic world into two different camps, with countries characterized by centrally planned economies and others with a free market economic system. After the Soviet Union was dissolved in 1991, now capitalism equally separated the former Soviet nations.