Us Trade with European Countries International Business

US Trade With European Countries

International Business

Table of Contents

Introduction 3

History 4

Free Trade Agreement 5

Positive Side Effects of the Free Trade Agreement 6

Negative Side Effects of the Free Trade Agreement 9

Conclusion 10

Work Cited 12

Introduction

The European Union is comprised of 28 countries and is the largest trading partner with the US. Lately a growing trend in International Business is the rise in power of Asian nations, specifically China and it’s trading power. Unknown to many is that the total investment the US has in the European Union is three times the amount of that the US has with all of Asia. Adding to that, the European Union has almost eight times the amount invested in the US than that of India and China combined (Shapiro, 2013). The transatlantic partnership between the US and the EU is quintessential for all economies and countries involved as the economies account for about half of the worlds total GDP and nearly a third of the worlds trade flows. Within the past couple of year there has been a great fluctuation within the United States economy, falling into what some had dubbed a recession. The ripple affects were felt by most major economies around the world, specifically members of the European Union. It is also important to remember that within the EU, the euro currency had been adopted by many of the members and the rise or fall of individual countries affected the value. As of now, the global economy is dependant on the US/EU and if a new trade deal falls into place everyone will benefit from newly added free trade agreements.

Over the past couple of years, this transatlantic partnership has planned rigorously to create a new deal that could shape for an even stronger relationship between the two sides. Since 2010, the EU and US have sought out “Global Free Trade” (Shapiro, 2013). In August of 2013, it was apparent that a EU-US global trade agreement would...