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Peter Pundit, an economics reporter, states that the European Union (EU) is increasing its productivity very rapidly in all industries. He claims that this productivity advance is so rapid that output from the EU in these industries will soon exceed that of the United States and, as a result, the United States will no longer benefit from trade with the EU.
a. Do you think Peter Pundit is correct or not? If not, what do you think is the source of his mistake?
b. If the EU and the United States continue to trade, what do you think will characterize the goods that the EU exports to the United States and the goods that the United States exports to the EU?
Steve Kafka, an American of Czech origin and a franchisor for Chicago Style Pizza, has make decision to increase his business into the Czech Republic.
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