Economics question?

[cougarhw]

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.


now 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?

[Annie Fannie]

It'll probably be material items for the very well to do.

[wizbangs]

Trade is all about giving the other person something they don't have, and receiving from that person something you don't have. Regardless of what EU productivity is slated to be, it will not eliminate the need for trade from either side. If it was, then why would the US need to trade anything since we have been the most productive?

The EU will continue to need natural resources for production, with the dollar being weak many of them will also look to the US as a vacation destination. You'd have to go over the actual production numbers of each category to determine what would be imported, what would be exported and what would change.