Syllabus Econometrics - ECO 402 Synchronous Online Spring 2021 EXAM POLICY: • Once the exam begins, you will not be allowed to leave the room until you are done with the exam or are ready to hand in...

US – EU TRADE AND ECONOMIC RELATIONSHIP ANALYSIS
EXECUTIVE SUMMARY
The paper intends create a critical analysis of the trade relationship that exists between the US and the European Union. Various aspects that get affected with their trade policies and the factors that could influence their relationship are discussed in detail in this report. A mapping of data that is collected from both the internal and external sources is used for this research. The external sources include the journals, scholarly articles, economic daily’s etc. Finally the report concludes on making observations of all complications and consequences of the trade policies that are in existence.
INTRODUCTION
The United States and European Union is the world’s largest parties that share a bilateral trade agreement and investment relationship each other. They enjoy the most integrated economic relationship in the world. This relationship can be considered as the major reason for the economic growth and prosperity of both the parties. The EU and US economies contribute to more than half of the world’s total GDP and nearly to the one – third of the world’s trade flows. Even though the trade ties are deep between the two parties some stringent barriers still exist between them. Over the passage of years both the parties are still looking to liberalize the existing trade and the investment ties and to enhance the regulatory corporations.
Now we can make a deep analysis on to the relationships and the issues that arises timely and the effects of these issues on the world economy and its reason in detail in the following parts.
US – EU TRADE RELATIONSHIP
Over the years the world has observed a strong trade and investment relationship that exists between the United States and the European Union. In the studies it has been observed that they have been trying to improve their relationship stronger with the help of the World Trade Organization (WTO). The trading relationship that exists is largely harmonious but often the frictions emerges periodically as they are involved in high level of economic activity and some disagreements that arises on some specific policies. These friction was in its peak when some of the United States trade policies and the approaches where changed under the Trump administration.
Now we can have a deep analysis in to the trade picture of US and EU. It is found that the total investment that is made by US in EU is three times higher than all the investments in Asia. When considering the European Union’s investment in the United States it may accounts to around eight times higher than the investment that is made in India...