This thesis deals with the essential features of the Croatian economy, its competitiveness and the impact of globalization on competitiveness. Competitiveness can be analyzed using multiple economic models, with the following listed: Competitive Diamond - Porter's Diamond Model, SWOT Analysis - Situation Analysis, and Benchmarking. The main features of Croatian exports are presented, as well as price and non-price competitiveness. Given that the products and / or services of the Croatian economy are part of the world global market, their demand is determined by indicators of competitiveness - the Global Competitiveness Index (GCI Index), which has been analysed and published since 1970 by the World Economic Forum in its annual Competitiveness Report. In addition, since 1989, the Institute for Management Development has published an annual report on the competitiveness of countries in the World Competitiveness Yearbook. The Doing Business Index, which compares national economies across ten different domains, is also used to analyze the economy and publish an annual report for 190 countries in the World Bank. Any advanced economy is an economy that is economically and politically free, so this thesis addresses the above freedoms as well as the Innovation scoreboard and the Globalization index. As Croatia is currently preparing for the introduction of the EUR, this thesis deals with the positive and negative aspects of its introduction to the Croatian economy, and a comparatively analyses of the Croatian economy with the economies of other countries from the point of view of economic and political freedoms. Every country wants to have a thriving economy for the better living standard of its citizens, more jobs, a more accessible education system and a health care, and a government that will work to improve the prosperity of the country.