Question

Which action has not helped the Baltic states transform their economies? privatizing industries encouraging foreign investment increasing trade with Russia increasing trade with Europe

Answer 1

Increasing trade with Russia has not helped the Baltic States transform their economies. Relying on the belief that their economic market would converge with Europe’s, the Baltic States found themselves drowning in their credit debt. Furthermore, the global recession hit the Baltic States hard and they are now floundering. Increasing trade has shown no effects of mitigating the economic downfall.

Answer 2

The correct answer is - increasing trade with Russia.

Increasing trade with Russia is not a step that was made by the Baltic states in order to improve their economies, instead they started to focus more and more on increasing the trade with the EU. Of course, they do have significant trade with Russia because they are neighbors and Russia has lot of natural resources, but they have tried to balance it in order to not be totally dependent by them.