Essay No.1.
Small economies in the increasing globalisation

I have chosen Luxembourg as a country with a small economy and a member of BENELUX regional block. My essay consider issues of Luxembourg relations with countries from NAFTA trade block and how Luxembourg can take advantage of technological development in the contexts of market globalisation.
Luxembourg’s economy is small, stable and high-income. Luxembourg’s economic success has made it one of the wealthiest countries in the world, with a per capita income that routinely ranks in the world’s top three.
Canada is a member of NAFTA and it’s relations with Luxemourg are strong. Canada and Luxembourg have developed a partnership based on shared values and ongoing political dialogue on major international issues. Canada and Luxembourg have signed numerous bilateral agreements and treaties, including an Agreement regarding the Sharing of Forfeited Assets (2001), a Convention on Double Taxation and Tax Evasion (2000), an Audio-visual Co-production Agreement (1996) and a Convention on Social Security (1990).
Canada and Luxembourg's long-standing friendship has also resulted in a strong economic and trade partnership. In 2011, Canada's exports to Luxembourg totalled CAD 89 million. During the same period, Canada's imports from Luxembourg reached CAD 115 million. Canada and Luxembourg also enjoy a thriving investment relationship built on natural synergies in our high-performing sectors. Luxembourg's cumulative direct investment in Canada increased from CAD 20,9 billion in 2010 to CAD 25,3 billion in 2011, making Luxembourg the 4th most important source of foreign direct investment in Canada overall. On the other hand, Canada's investments in Luxembourg increased from CAD 13,5 billion in 2010 to CAD 13.8 billion in 2011.
With a next member of NAFTA- USA, Luxembourg has also strong relations. USA and Luxembourg relationship is expressed both bilaterally and through common membership in NATO, the Organization for Economic Co-operation and Development (OECD), and the Organization for Security and Co-operation in Europe (OSCE). However, in 2003, Luxembourg opposed the US-led war in Iraq, along with Germany, France and Belgium, forming the “coalition of the unwilling.” Efforts have since been made to repair these relations. After that there were many visits into each others country to make relations stronger.
Luxembourg’s relations with Mexico is not yet well developed and there is no synergy ar in relations with Canada. Mexico ir interested in Luxembourg financial industry. Luxembourg investment funds are distributed in more than 70 countries around the world, including the Americas, where Chili, Peru, Brazil and Columbia are the main markets. As of today, exchange of financial services between Luxembourg and Mexico is still one-sided, because Mexican funds are not yet available for distribution in Luxembourg , purpose of that might be European legislation. Mexico is willing to develop a sustainable relationship with Luxembourg.
To sum up, Luxembourg relations with members of NAFTA are good, with Canada there are strong and developed, they builded good partnership based on synergy. Luxembourg’s relations with USA are based on bilateralism, but relations with Mexico is still needed to be developed.
As a country with small economy in rapidly changing globalization market the competitiveness of a country or region is more and more dependent on effective innovation networks. Luxembourg has therefore implemented various initiatives in order to strengthen the reseach and development (R&D) and innovation potential of companies and to reinforce links with public research organisations and academia.
The Luxembourg Cluster Initiative, launched in 2002 by the Luxembourg government, is a key element of the national R&D and innovation policy which brings together various clusters and innovation networks established in the Grand Duchy of Luxembourg. It actively encourages networking between the private and the public sectors and focuses on key technologies that have been identified as being important for the future sustainable development of the Luxembourg economy.
Being a small country means there is less territory to cover, so ultra-fast fixed-line internet connections are widely available and mobile broadband penetration is one of the highest in the EU at 64.8 %, and growing.
This is important as access to information and communication technologies (ICT) is often related to the level of innovation in a country. In 2012, 86 % of the population used the internet regularly (at least once a week), compared to the EU average of 68 %. Luxembourg is ahead of the curve in terms of e-inclusion with 76 % coverage of disadvantaged groups - well above the EU average of 53 %.
In summary, Luxembourg chances to take an advatage of technological development in in the contexts of market globalisation are real and are good.In 2010 Luxembourg ranked 7 by the ICT Development Index, what means access, use and skills of ICT in this country are at high level and there is a place to grow.

Used links for an essay: 1. http://www.canadainternational.gc.ca/belgium-belgique/bilateral_relations_bilaterales/canada_luxembourg_relations.aspx?lang=eng 2. http://www.innovation.public.lu/en/clusters/index.html 3. http://www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief16_e.htm 4. http://cordis.europa.eu/fetch?CALLER=OFFR_TM_EN&ACTION=D&RCN=10898