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The United States And European Union

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An Agreement to Create a Favorable Economy by Balancing the Net Export
President Obama proclaims a free-trade agreement between the United States and European Union. This issue creates enthusiasm and optimism on both sides. They hope to achieve economic and political benefits. The hard economic time on both the United States and European Union is the main reason of this agreement. Another consideration is the growing economics of China. Europe and USA should work together for dealing with China 's growing economy. Since the USA and the European Union was a big trading partner, they will remove tariff barriers and regulatory detention. The deal that balanced regulations on food, cars, toys, and pharmaceuticals is more necessary to save …show more content…

Their products dominate the worldwide market. This problem causes negative shocks to net export of the USA and the European Union.
Net export of country is the balance of trade; it is a difference value of spending by foreign entities in goods and services that produced domestically and spending by domestic entities in goods and services that produce in foreign location. The president of the USA, Barack Obama, believes that he can make an agreement with European Union about a trading corporation. The agreement will achieve economic and political benefits for both the USA and the European Union. In addition, they can compete with other developing countries, whose dominating worldwide market.
Experts cited tough economic times on both sides of the Atlantic and a perceived need among European leaders for a cause to unify their frayed union as major reasons that an agreement might be reached now (Kulish and Calmes,2013). From the fact above, the economic condition of both the USA and the European Union were bad. The agreement might help their economic come back to normal. In macro-economy, we know that net exports are affecting the gross domestic product (GDP) of a nation. A negative net export in several month or years will shift the aggregate demand on the curve to the left (curve 1). It causes the real national output and consumer price level decrease. If the government does not take an action, the condition can be heading to

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