Improving national competitiveness is fundamental to raising long-term economic growth rates and enhancing living standards. The determinants of competitiveness change along with macroeconomic factors, business environment and consumer demand. These changes are visible in the growing importance of digitalization of enterprises of all sectors that has become a critical factor for competitiveness in recent years and will likely become even more essential. The main determinants of competitiveness performance in the European Union (EU) were analyzed in the proposed research. The study included a holistic approach to competitiveness and economic growth and aimed to reveal the factors that determine and contribute to the growth of European economies, as well as to identify clusters of the EU countries. The criteria of competitiveness that are significant for estimation of competitiveness factors and their relationship with economic growth were revealed by using factor analysis. The results indicate that the most significant factors are F1 Macroeconomic Stability, F2 Research and Development (R&D) and Digitalization, F3 Foreign Direct Investment and F4 Trade Openness. By applying cluster analysis, the EU countries were grouped into five clusters on the basis of the contribution of competitiveness factors to economic growth.

The current period describes the impact of the global COVID-19 pandemic and the ensuing economic crisis on businesses and the lives of citizens. It has accelerated digital transformation in all areas. The work and learning of many individuals have moved to the digital environment. In order to use digital technologies, employees need to acquire new knowledge and skills. The aim of this research study is to perform an analysis of the development of digital transformation and relevant competencies for employees and to identify the opportunities and challenges in Latvia. The research methodology applied for this research study is based on examining relevant theoretical concepts and publications of the EU regarding digital transformation. A survey method was used to find out the opinions of Latvian employers regarding the importance of digital transformation and relevant competencies for employees. The analysis of the research indicated that the majority of the respondents surveyed rated the level of implementation of digital transformation as high or medium-high, which shows that this is a good trend, and the digitalization process continues to progress. However, about a third of enterprises are only at the early stage of digitalization, while some have not yet begun it. The problem is the development of human capital competencies and digital skills. This is a specific research study that expands and provides insights into the situation in Latvia on the possibilities of implementation of digital transformation, which is closely linked with the development of human capital competencies and digital skills. This requires maintaining a holistic approach to targeted digital transformation management.

The aim of this research study is to perform an analysis of the consequences and impact of the fourth industrial revolution on the development of employability skills and to identify possible solutions to help overcome these challenges. The research methodology applied in this research study involves examining and analysing literature and Internet sources. To identify possible solutions for the development of employability skills in the context of challenges of the fourth industrial revolution, the Analytic Hierarchy Process (AHP) was used. The results of the research indicate that the promotion of youth employability requires close cooperation between educational institutions and entrepreneurs, as well as that significant attention should be paid to investment in human capital and the digital transformation of business. The research expands and provides insights into the situation in Latvia regarding the impact of the fourth industrial revolution on the development of employability skills and performed an analysis of the main possible solutions for the successful development of employability skills in Latvia that can be ensured by investing in human capital and improving the business environment, the digital transformation of SMEs and the modernization of the education system. In this context, it is crucial to promote more collaboration among educators, academics, policymakers, and practitioners.

The emergence of new technologies and the expansion of digitalisation have created an opportunity for e-commerce to develop. A supplier and a buyer of goods and services meet in the e-environment and solve their problem without direct contact, which is mutually beneficial. Accordingly, when it comes to globalisation, e-commerce, as a system, becomes an important topic of research in general, and, in particular, it is vital for small and medium enterprises (SMEs), since most enterprises in the European Union (EU) are SMEs. Latvia and Lithuania are EU Member States, and SMEs are dominant in these two Baltic States. The aim of the research is to identify and compare the opinions of producers/sellers and buyers on the positive contribution of e-commerce to date and the problems caused by e-commerce for both sides. The research employed data from Eurostat, OECD and the Central Statistical Bureau of Latvia as well as the authors' own data from a survey (e-commerce users: suppliers (n=112) and buyers (n=138) of goods and services) conducted in Latvia and Lithuania. An analysis of the statistical data reveals the current objective position of e-commerce in both countries. The proportion of small and medium enterprises involved in this process is increasing. At the same time, the processing of the results of the e-commerce survey enables the authors to see a subjective view of this process, which includes both positive and negative features of both the buyers and the sellers. Identifying problems and comparing the situations in the two neighbouring countries opens the way to find e-commerce development directions and reduce the problems not only economically but also geographically and ethnically, as the objective data on e-commerce are not identical for Latvia and Lithuania, even though the data are positive and only slightly different.