ByRobin Kapoor

Deepak KumarSourabh GargVikas SharmaTushar Garg

About American economyCurrency – DollarGDP- 13.81 trillion (2007)GDP growth – 2.1 %Inflation – 5.6% (June 2007 to June 208)Population below poverty line – 12.5%Unemployment – 6.1% ( august 2008)Exports - $1.149 trillion f.o.b. (2007

est.)Imports - $1.985 trillion c.i.f. (2007

est.)Largest economy in the worldStable overall GDP growth rateHistory

European UnionThe European Union (abbreviation: EU) is

an economic and political union of 27 member countries in Europe, started in 1957 as the European Economic Community (EEC).

It has created a common economic area with Europe-wide laws allowing people to move and trade in other EU countries almost like it was their own. Fifteen of these countries also share the same money: the euro.

European UnionPopulation: 710,000,000GDP (PPP): US$ $12.82 trillion

(2006)GDP/capita (PPP) : $18,056GDP /capita (Currency) : $18,935Annual growth of per capita GDP: 2.8%

(2006)Income of top 10%: 27.5%Millionaires: 2.6 million (0.3%)Unemployment: 8.8% (2006)Estimated female income: 56.7% of male

What has Europe done?Safer and Cheaper FlightsStudent Exchange ProgramsThe Single MarketProtection of Intellectual PropertyPeaceRegional FundsThe EuroCheaper and Better Phone callsConsumer ProtectionA Healthier EuropeEnvironmental ProtectionEqual Opportunities - Against DiscriminationExternal Trade

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NAFTA• no internal tariffs among members, but each

country imposes its own external tariffs to the third country.

• The largest trading bloc in terms of GNP• A good example of trade diversion (production

shifted from Asia to Mexico)

Provisions of NAFTAElimination of tariffsHarmonization of trade rules (subsidies,

antidumping, safety standards)Liberalization of capital movement (FDI)Protection of intellectual propertiesDispute settlementProvisions on labor and environmental

standards

Economic Effects of NAFTATrade

Trade among members increased faster than trade with the rest of world

InvestmentMexico is the main beneficiary (FDI not only

from the U.S. and Canada, but also from other countries)

EmploymentDifficult to measure because of too many

confounding variablesOverall employment effect in the area including

the U.S. has been positive

NAUThe North American Union (NAU) is a

theoretical continental union of Canada, Mexico and the United States similar in structure to the European Union, sometimes including a common currency called the Amero.

Its true aim was to expand the North American Free Trade Agreement (NAFTA) into a North American Union analogous to the European Union (EU), with open borders and a common currency among other features, was being made by the fall of 2006,

Comparing bothThere are substantial similarities between the

US Guidelines and the EU's TTBE and Guidelines. Both approaches create safe-harbors and both identify naked price fixing, output restraints, and market division among horizontal competitors as per se unlawful or hardcore restrictions. Both weigh the procompetitive benefits and the anticompetitive effects when evaluating most licensing restrictions. And under both regimes, responsibility for assessing the legality of contractual agreements will rest in the first instance with the licensing parties themselves.

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