Please response to a, agree or disagree with their opinions about economic blocs. Support your position with specific examples. Italy is one of the six founding nations of the EU (European Union), which was originally developed in 1950, to run their local coal and steel industries under a common management. The EU and US are the biggest economic and military powers in the world. the two together represent 49% of global GDP, 31% of world trade in goods and 42% of world trade in service. While the EU and the US have very different political, economic and social agenda's, it is estimated that their disputes only affect 2% of their trade. The two formed the transatlantic declaration in 1990. Since that time, they have utilized the new transatlantic agenda (NTA) for the foundation of their relationship, as well as, annual summits are held between the us and the

The largest trade agreement affecting the country is NAFTA. This trade agreement is between Canada, the USA and Mexico and is meant to eliminate tariffs and sponsor investment and trade between the nations. For Mexico the trade agreement has generally aided the nation’s economy. Industrial and agricultural exports have increased due to the trade agreement and added emphasis for the government to invest further in infrastructure to facilitate these exports. Today many Mexican products are sold in the us and Canada whereas before Mexico made up a very modest share of the market in Canada or the USA. This trade agreement has benefited Mexico immensely, while the United States has secured more mixed results. the industrial increase in Mexico has detrimentally affected factory laborers in the us as manufacturers move their manufacturing plants to Mexico for the cheaper costs of production there. When the financial disincentives to relocate were eliminated by NAFTA many factory owners saw an opportunity to make more money by cutting labor costs. The result is cheaper products for the American public but a decrease of jobs and capital for the average American. This flow of American capital and jobs into Mexico has resulted in the growth of many cities where these industries have been established such as Reynosa or Puebla.

In essence Mexico’s economy has grown quite rapidly since the signing of NAFTA. The USA has dropped its tariffs on its southern neighbor much as it already had dropped tariffs with Canadian products even before the trade agreement. This makes trade and investment relatively easy between the signatories. With Mexico increasing it’s spending on infrastructure to facilitate trade the benefits of this agreement for the country increase every day and make it more competitive in the North American market.