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• A Conjectured Cournot Duopoly Model for the EU–US Automobile Trade: A Game Theoretic Analysis of the TTIP’s Most Traded Product

  48-70

  Eszter Kovács

  Views:

  213

  Economic actors, in their interactions with each other, certainly make decisions which are able to improve their original situation. In the case of free trade agreements, tariffs have the effect to manipulate countries’ trade and welfare. In this paper, we try to estimate the impacts of the Transatlantic Trade and Investment Partnership (TTIP) on the profit level of participating countries in the context of the Cournot duopoly model. More specifically, we elaborate the most traded product (MTP) and determine the profit levels in the equilibrium regarding two scenarios (pre and post situations of the TTIP). The findings suggest that the Cournot model seems suitable since it illustrates the possible options and provides a guideline for the decision-making process. Based on the model, it can be shown at which point the highest benefit can be achieved for the participating economies (EU, US) i.e. how long it is worth for the parties to apply additional automotive tariffs.

• The role of France in the economy of the EU

  207-224

  Mariann Eszter Kovacs

  Views:

  100

  The author examines the decisive role of France within the EU. After a preliminary examination of the principles of European integration and its historical development, the article analyses the netwrok of connections existing between the EU and the French economy, as well as the period of growth and retrenchment in its development. The main theme of the article is the debate over the stability and growth pact and the circumstances and consequences of the failure to comply with the pact's rules caused by the France's long-lasting budget. This failure calls into question, and in the long term may be fatal for the future of European integration and for the direction of a common supra-national economic policy and the national responses it requires. The common European currency, and the stability and future of the Euro are also affected, since this failure can influence the co-operative efforts of the various elements of the European Union in an unprecedented way. It also affects the relationships bewteen the smaller and larger countries, and the economic opportunities of all member states.