The shape of the world economy is changing. Globalization and regionalism have led to the development of powerful but interdependent economic blocs. Europe, considered as one such bloc, is the world's biggest international trader and investor. However, much economic potential has shifted from the Atlantic to the Pacific area. In view of this The European Economy argues that economists need a broader, worldwide base of information if these processes and their effect on Europe are to be fully understood. Discussing core European issues in depth, the book highlights the influence of other countries on the Europe, and vice-versa. This fresh approach highlights the issues which will challenge European countries in the 21st century.

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