One of the most dangerous deficits facing transatlantic relations today is not in trade, payments, or military capabilities. It is a deficit in understanding the vital stake Americans and Europeans have developed in the health of their economic relationship. Globalization is happening faster and reaching deeper between Europe and America than between any other two continents. The transatlantic economy generates roughly $3.5 trillion in total commercial sales a year and employs over 12 million workers in mutually "insourced" jobs. This book maps the increasingly dense web of investment, trade, and jobs that connects Europe's regions to America's states. It traces the impact of NAFTA and EU enlargement on transatlantic economic flows. It tracks intercontinental "connectivity" in the new knowledge economy, and it sets forth areas in which Europe and America continue to be global pathfinders. In the context of today's debates about globalization and transatlantic drift, this book offers some unanticipated and counterintuitive connections that have important policy implications.

Daniel S. Hamilton is the Richard von Weizsäcker Professor and director of the SAIS Center for Transatlantic Relations, Johns Hopkins University, USA. He also serves as the director of the American Consortium for EU Studies in Washington, DC, USA.

Joseph P. Quinlan is a nonresident fellow at the Center for Transatlantic Relations and an experienced Wall Street analyst.