Reference no: EM133125997

German Exports Rise, But September Surplus Narrows

Germany's trade surplus narrowed slightly in September as imports grew faster than exports for Europe's largest economy.

The Federal Statistical Office said Monday that September exports rose 2.6 percent to 100.3 billion euros ($108.18 billion) over the month before, when adjusted for calendar and seasonal factors. This narrowing fell in line with many other top economies fall in exports, which corresponded with the devaluation of the Chinese Yuan. Imports rose 3.6 percent to 80.9 billion euros since the devaluation of the yuan which has had a ripple effect around the world.

September's trade surplus was 19.4 billion euros, compared to August's 19.6 billion euros. Germany exported 62.2 billion euros of goods to other countries inside the European Union in September, including 38.7 billion euros to countries using the euro currency, and 23.5 billion euros in goods to non-euro countries, in unadjusted figures.

It imported 55.3 billion euros in goods from other EU countries, including 37.8 billion euros from within the eurozone and 17.5 billion from those outside.

(a) What can be defined above for our sections of international trade? (need at least 4 options)

(b) What diagrams can be used to describe what is happening to the economies mentioned above? (should use at least two diagrams)

(c) What are some possible reasons for the above CHANGES to the economy? Identify and explain what can be done to fix the PROBLEMS that exist in the above article?

(d) Evaluate the potential effects of the surplus on Germany. Suggest a plan to limit the impact that China has on Germany.