A short product test covering America or somewhere in Europe (7)
I believe the answer is:
austria
'somewhere in europe' is the definition.
(European nation)
'a short product test covering america' is the wordplay.
'short' means to remove the last letter.
'product test' becomes 'trial' (I've seen this in another clue).
'covering' means one lot of letters goes inside another.
'america' becomes 'US' (United States).
'trial' with its last letter taken off is 'tria'.
'a'+'tria'='atria'
'atria' placed around 'us' is 'AUSTRIA'.
'or' is the link.
(Other definitions for austria that I've seen before include "Landlocked European country" , "USA art I send to European state" , "Us tiara found in a European state" , "Find US tiara in this country" , "Republic of central Europe" .)