First, watch the PBS NewsHour video “How Germany Became Europe’s Richest CountryLinks to an external site. and read the Bloomberg article “German Trade Surplus Widens as Exports Unexpectedly Increase Links to an external site.” to learn more about German approach to trade and creating an export surplus.
Then, respond to the following three questions –
- Find out the contribution of trade to German GDP output and its current trade balance using data from WorldBank Links to an external site.. What is the contribution of trade to German GDP and does Germany have a trade surplus?
- If so, what is Germany doing differently to create manufacturing jobs and export surplus?
- What lessons can we learn to reduce the U.S. trade deficit?