ABSTRACT
The theoretical approach draws on theories in economics, international trade and finance, political science, public administration, and public policy. Given the complex economic, political and security environment which the Nordic-Baltic region faces, the multiple theoretical and methodological approaches used essential for the analysis. Democracy is also discussed, employing theories on 'Exit, Voice and Loyalty' to explain the different behaviour of individuals in the Nordic region versus the emerging Baltic region and how it may affect those countries. Theories about the behaviour of small states in multilateral institutions are also discussed, along with how they co-operate with, influence or are influenced by larger states, as well as other small states, when participating in multilateral arrangements including regional and global institutions. The choice of a country to enter the euro area cannot be explained by economic integration theories only.
