Albania's transition to capitalist system and actual import-export possibilities

From 1945 until 1990, Albania lived under a strict communist regime, and as a result its foreign trade suffered considerably. Albania would only trade with communist countries. However, even this type of trade mainly involved the exchange of goods between the two countries. This way, each country?s needs for goods were met by the exchange process. In 1990, the elections ended 45 years of communist rule for Albania, by making it ready to establish new relationships with other countries in the world. This signs the beginning of Albania?s reborn foreign trade. Albania was facing a trade deficit for two reasons: Albania?s production was being close to nothing and it tried to cover the country?s internal needs for goods by importing mainly from the neighboring countries. Some of the goods that get exported from Albania include: shoes, leather and textiles. Although the production of the above goods is in small quantities, it has helped towards lowering the country?s trade deficit. Furthermore, the signing of the free trade agreement with 8 countries has had its influence on Albania?s foreign trade. Albania?s strategic location in the south-east of Europe has meant that Albania has always been involved in European as well as Asian trades. However, there are three main partners in Albania?s foreign trade, which are: Italy, Greece and Germany. Turkey, Macedonia and Kosovo have also played an important role in Albania?s foreign trade.