By

Robin Kapoor
Deepak Kumar
Sourabh Garg
Vikas Sharma
Tushar Garg
About American economy
Currency – Dollar
GDP- 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 - $1.985 trillion c.i.f. (2007
est.)
Largest economy in the world
Stable overall GDP growth rate
History
European Union
The European Union (abbreviation: EU) is an
economic and political union of 27 member
countries in Europe, started in 1957 as the
European Economic Community (EEC).
It has created a common economic area with
Europe-wide laws allowing people to move
and trade in other EU countries almost like it
was their own. Fifteen of these countries also
share the same money: the euro.
European Union
Population: 710,000,000
GDP (PPP): US$ $12.82 trillion
(2006)
GDP/capita (PPP) : $18,056
GDP /capita (Currency) : $18,935
Annual 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 Flights
Student Exchange Programs
The Single Market
Protection of Intellectual Property
Peace
Regional Funds
The Euro
Cheaper and Better Phone calls
Consumer Protection
A Healthier Europe
Environmental Protection
Equal Opportunities - Against Discrimination
External 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 NAFTA
Elimination of tariffs
Harmonization of trade rules (subsidies,
antidumping, safety standards)
Liberalization of capital movement (FDI)
Protection of intellectual properties
Dispute settlement
Provisions on labor and environmental
standards
Economic Effects of
NAFTA
Trade
Trade among members increased faster than
trade with the rest of world
Investment
Mexico is the main beneficiary (FDI not only
from the U.S. and Canada, but also from other
countries)
Employment
Difficult to measure because of too many
confounding variables
Overall employment effect in the area including
the U.S. has been positive
NAU
The 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 both
There 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
Thank you