Because of its strategic geographic location, Latvian territory has always been invaded by other larger nations, and this situation has defined the fate of Latvia and its people.

At the end of the 1100s, Latvia was more often visited by traders from western Europe who set out on trading journeys along Latvia's longest river, the Daugava, to Russia. At the very end of the 12th century, German traders arrived and with them came preachers of the Christian faith who attempted to convert the pagan Baltic and Finno-Ugrian tribes to the Christian faith. The Balts did not willingly convert to the new and different beliefs and practices, and particularly opposed the ritual of christening. News of this reached the Pope in Rome and it was decided that Crusaders would be sent into Latvia to influence the situation.

The Germans founded Riga in 1201, and gradually it became the largest and most beautiful city in the southern part of the Baltic Sea. With the arrival of the German Crusaders, the development of seperate tribal realms of ancient Latvias came to an end.

In the 1200s, a confederation of feudal nations developed under German rule that was called Livonia. Livonia included today's Latvia and Estonia. In 1282, Riga and later Cesis, Limbazi, Koknese and Valmiera were included in the Northern German Trading Organisation, or the Hanseatic League (Hansa). From this time, Riga became an important point in west-east trading. Riga, being the centre of the eastern Baltic region, formed close cultural contacts with Western Europe.