With your starting point in appendix 1, calculate and illustrate graphically the following: The development in German exports in general and for individual markets (countries). The importance of individual markets.
Appendix 5 shows the development in exchange rates for the US dollar against the Euro. In early 2011, the price of 1 Euro was 1.3371. Ten years later, in early 2021 the price is 1.2161. Describe the development of the exchange rate applying correct and precise language. Include calculations.
Explain the effect the exchange rate development has had on German competitiveness. Include briefly an explanation of which other factors would be having an effect.
Appendix 2 shows the prognosis for the German economy.
Account for the contribution of the various components of aggregate demand to the German economy.
Analyse the reasons for the growth expected in 2021, applying the national income balance (aggregate expenditure equation): GDP + M = C + I + G + X Identify the most influential factor.
As an advisor to the German government, you are asked to write a brief (600 words) suggesting policy actions to be taken to see German companies through the current crisis.
Include all appendices and sections of this assignment in your considerations.
The suggestions should be aimed at:
• improving structural competitiveness
• securing private households' spending power and consumption
The brief should also include an assessment of the consequences of the suggestions for:
• The German public budget
• the German trade balance
This graph illustrates the total change of German exports, I have used index numbers to illustrate the true changes in growth.
The picture shows a change in Germany’s export between 2000 and 2018, where the increase has been around 184%.
This pie chart illustrates the largest export partners by value. The most important export partners are the US (18%), France (17%), China (15%), Netherlands (14%), and the UK (13%).
It becomes apparent that the US, China, and European nations account for a large part of Germany’s export.
With the starting point in the chart in appendix 5, which shows a clear depreciation of the Euro against the US Dollar over the ten-year period.
The depreciation of the Euro against the dollar amounts to 9.95%, which has been calculated by dividing the starting year with the end year, and then multiplying by a 100, giving the total percentage change over the period.