n
June of 2001; Chancellor of the Exchequer BROWN has identified some
key economic tests to determine whether the UK should join the
common currency system, but it will largely be a political decision.
A serious short-term problem is foot-and-mouth disease, which by
early 2001 had broken out in nearly 600 farms and slaughterhouses
and had resulted in the killing of 400,000 animals.

United States:
The US has the largest and most technologically
powerful economy in the world, with a per capita GDP of $36,200. In
this market-oriented economy, private individuals and business firms
make most of the decisions, and government buys needed goods and
services predominantly in the private marketplace. US business firms
enjoy considerably greater flexibility than their counterparts in
Western Europe and Japan in decisions to expand capital plant, lay
off surplus workers, and develop new products. At the same time,
they face higher barriers to entry in their rivals' home markets
than the barriers to entry of foreign firms in US markets. US firms
are at or near the forefront in technological advances, especially
in computers and in medical, aerospace, and military equipment,
although their advantage has narrowed since the end of World War II.
The onrush of technology largely explains the gradual development of
a "two-tier labor market" in which those at the bottom lack the
education and the professional/technical skills of those at the top
and, more and more, fail to get comparable pay raises, health
insurance coverage, and other benefits. Since 1975, practically all
the gains in household income have gone to the top 20% of
households. The years 1994-2000 witnessed solid increases in real
output, low inflation rates, and a drop in unemployment to below 5%.
Long-term problems include inadequate investment in economic
infrastructure, rapidly rising medical costs of an aging population,
sizable trade deficits, and stagnation of family income in the lower
economic groups. Growth weakened in the fourth quarter of 2000;
growth for the year 2001 almost certainly will be substantially
lower than the strong 5% of 2000. The outlook for 2001 is further
clouded by the continued economic problems of Japan, Russia,
Indonesia, Brazil, and many other countries.

Uruguay:
Uruguay's economy is characterized by an export-oriented
agricultural sector, a well-educated workfor