Germany And The European Union Essay

712 Words May 7th, 2016 3 Pages
1. Germany and her neighbors are members of the European Union (EU) and consequently, they share the same currency, the euro. By using the euro, businesses save money by avoiding costly exchange rate processing fees. Likewise, it strengthens competitiveness in the form of equal price comparison. In addition, it creates a fair macroeconomic system among the countries (Peng 118). That is to say, that one country can no longer undervalue their currency to keep other countries from being competitive.

Furthermore, as part of the EU, Germany, and her neighbors enjoy the benefits of no tariffs and reductions in nontariff trade barriers. Because there are no customs duties, taxes imposed on imported goods and services, Germany has become more competitive in exporting their products and services internationally. Likewise, reductions in nontariff barriers, such as levies, embargoes, and other restrictions, allow Germany to move their goods and services throughout Europe without restriction. Overall, these removals and reductions have created a level playing field in free trade amongst Germany and her neighbors.

Subsequently, this union has led to Germany having the strongest economy in the EU and the fourth worldwide. Their economic status has flourished in large part to their focus on exporting, thus, keeping them competitive in the global market. In addition, their strong economy has resulted in a high employment rate. While the employment rate continues to maintain a strong…

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