European–American Trade and Financial Alliances

European–American Trade and Financial Alliances

New Horizons in International Business series

Edited by Gavin Boyd, Alan M. Rugman and Pier Carlo Padoan

In this, his final book, Gavin Boyd has brought together a distinguished group of experts on the nature and extent of transatlantic policy coordination and its implication for corporate strategy. This remarkably relevant set of papers offers a discussion on the economic and financial linkage between Europe and North America, as well as the trade and investment rules governing this interaction.

Chapter 7: Concerting entrepreneurship: an international public good

Peter J. Boettke and Christopher J. Coyne

Subjects: business and management, international business


Peter J. Boettke and Christopher J. Coyne There is little contention that entrepreneurship is the driver of economic growth (Leff, 1979; Kasper and Streit, 1998; Kirzner, 1985; Boettke and Coyne, 2003).* Globalization – specifically, ever-expanding technologies and avenues into economic markets throughout the world – characterize today’s economic environment in which the entrepreneur must act. This ever-growing interdependence is illustrated by the relationship between the United States (USA) and the European Union (EU). The relationship between the USA and the EU can be described as cooperative, but cautious. The cooperative element is clearly illustrated by the growth of the trading relationship between them, as summarized in Tables 7.1a and 7.1b. Table 7.1a US–EU trade from 1991 to 2001 (billions of US dollars) Total trade 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 201.9 209.0 207.1 227.3 255.6 270.6 298.3 325.4 347.0 385.1 378.8 US exports to EU 108.5 107.7 101.5 107.8 123.7 127.7 140.8 149.0 151.8 165.1 158.8 EU exports to USA 93.4 101.3 105.6 119.5 131.9 142.9 157.5 176.4 195.2 220.0 220.0 US trade deficit with EU 15.2 6.5 (4.1) (11.7) (8.2) (15.2) (16.7) (27.3) (43.4) (55.0) (61.3) Note: US International Trade Administration, data available at td/industry/otea/usfth/tabcon.html. Note that Austria, Finland and Sweden joined the EU in January 1995, but are included in all years in the table. Figures in parentheses indicate a negative balance. 165 Boyd 03 chap07 165 21/7/05 09:39:49 166 European–American trade and financial alliances Table 7.1b...

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