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The Book is aimed at demonstrating that the main theoretical approaches to the external economic behavior of small countries with a transitional economy are insufficient to explain such important issues in the foreign economy of small states as an assessment of external economic threats and the choice of economics allies. Ignoring the modern geo-economic paradigm is a serious obstacle to their accelerated development. The first chapter Book is dedicated to studying theoretical issues of geo-economics. Based on the views of E. Luttwak and his critics the author analyzes books and articles, which are devoted to the definition of the concept of the modern geo-economics. On this basis, the author proposes their own version of the definition of geo-economics. The second chapter explored the identification and systematization of geo-economic threats that directly affect the development of small countries with economies in transition (using the case of Georgia). The third chapter is devoted to the study of factors of regional economic integration in the South Caucasus in the context of the geo-economic problems of Georgia.