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Latvia is a northern European country located on the Baltic Sea, bordered by Estonia, Lithuania, Belarus, and Russia. Its capital, Riga, serves as the political, economic, and cultural center and developed historically as a major trading port within the Hanseatic League. Over centuries Latvia was governed by various powers, including German states, Sweden, and the Russian Empire, which shaped its institutions and infrastructure. In the twentieth century Latvia gained independence after the First World War, was later incorporated into the Soviet Union, and restored its sovereignty in 1991. Today Latvia operates as a parliamentary republic and is a member of the European Union and NATO. The economy includes transportation, logistics, manufacturing, forestry, and services, supported by its position as a regional transit hub. Latvias modern development reflects efforts to strengthen economic stability, maintain national identity, and integrate fully into European political and economic systems.