The EU and Mercosur are transnational trading organizations that have signed the trade agreement. In my thesis I will do a comparative analysis of the EU and Mercosur common market and their balance of trade. I will critically analyze their trade agreement. I will compare and present two different economic concepts (Milton Friedman and Yanis Varoufakis). Friedman was an advocate of the free market idea. He advocated eliminating customs and other barriers to international trade. Varofakis is left-wing, he was Syrizes Greek finance minister and a critic of Europes austerity policy. The EU and Mercosur are common markets that operate on the principles of freedom and democracy. In 2008, a global economic crisis erupted and hit Greece (EU member state) hard. The EU, IMF and the Greek government have been hiding the reality (bankruptcy), which has caused economic crisis. The common European monetary policy (with the euro) has had a profound impact on Greeces economic situation. The EU started with the idea of free trade between its members, and over the years it has been gaining more and more powers. Mercosur, on the other hand, acts as a common market that covers a larger territory than the EU.
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