To what degree has the EU been successful in advancing its comparative advantages, relative to the U.S

Instructions:

· Prepare a four-page essay, responding to ONE of the following topics.

· The format is to be followed as per the course syllabus.

· Expectations: a clear presentation of the facts/dimensions of the topic; an understanding of the causes of the issues arising from the topic, the considerations of decision-makers in addressing the issues and, thirdly, the implications of the decision-making process or historic outcomes related to the topic.

Option One – The”Euro-Blocs”

The European Union (EU) has grown by increments over the last fifty to sixty years. Within the union, today, there are a number of groupings of countries resulting from shared interests as a result of their geography, industries, common currency, trade patterns, economic/institutional restructuring, among other factors. Outline the evolution of the EU and linkages between their interests and positions in terms of, for example, their histories, their political economies, their cultural ties, as well as their trade and security aspirations. Within your essay, describe any commonalities, differences, challenges, tensions and successes involved with these “blocs” realizing their expectations of membership in the EU.

Option Two – Comparative Advantages

Describe the theory of comparative advantage and the rationale for its application in a single market context, such as the European Union (EU). In describing the rationale, include Nello’s explanation of the Heckscher-Ohlin Theorem and its application to the EU context. (Include graphic displays, if you wish.) Finally, to what degree has the EU been successful in advancing its comparative advantages, relative to the United States?

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