Local MarketAlthough there are many local market components to consider in Latvia, our group decided to focus on two key ideas. The first element concerns the economic climate. Over the past decade, the Baltic countries have experienced considerable economic growth. Foreign and domestic investors poured funds into Lithuania, Latvia and Estonia. As a result, Latvia's GDP increased by 12.3% in 2006 and 10.2% in 2007 (CIA World Factbook). This growth was driven by three market factors. First, real estate prices increased by almost 60% in 2005. Second, consumer spending increased significantly. In 2006, the current account deficit amounted to 25% of Latvia's GDP. Third, wage and price inflation increased by 10% in 2007 (The Party is Nearly Over). These elements supported considerable economic activity, helping to explain the strong growth experienced in 2006 and 2007. However, these economic catalysts were not sustainable. By 2008, Latvia's GDP would decline by 5% (CIA World Factbook). The consequences of an overheating economy are shaping the needs of Latvian consumers. In particular, a recovering economy encourages consumers to seek simplified and reliable products. With a lower marginal propensity to consume, economically average individuals have more conservative spending habits. This vision shapes our overall marketing strategy. The second component of the local market embodies the geography and topography of Latvia. Much like the economic climate, this knowledge provides relevant information about consumers' product needs. Latvia is a relatively small area, with an area of ​​approximately 63,500 square kilometers (CIA World Factbook). Middle of paper......the 7 largest cities after Riga - Liepaja, Ventspils, Jelgava, Jekabpils, Daugavpils, Rezekne, Cesis, Valmiera. Although dealers will hold title to our product, we will ensure that they market, sell and advertise the car in a manner consistent with our company's global standards. We will ensure that our automobiles are prominently displayed alongside our competitors, as these authorized dealers often have contracts to sell automobiles from three or four companies. The marketing of our cars must be consistent with the image of our company and throughout the world. To speed up this process, we will offer training to resellers and sellers in Latvia. Additionally, the handling and feel of the car is very important, which is why we will have test drives available. Customers will be able to book test drives online or call dealerships to schedule a test drive..