The paper "Trade Finance and Foreign Exchange in Germany" is an outstanding example of a macro and microeconomic assignment. Germany is a country found in Europe where it happens to be the largest economy in its continent. It also comes number four in the world in terms of nominal Gross Domestic Product (GDP). Germany is also the third-largest economy in terms of exports, which is more than one-third of the world’ s total exports. For instance, in 2013, Germany managed to record a trade surplus of about $270 billion, which was, in fact, the highest in the world.
All this has attained because of its innovation and the fact that the country operates on a social market economy concept (Braun, 1990, p. 102). Most of Germany’ s exports are machinery and equipment, motor vehicles, chemical products, electronic products like computers and pharmaceuticals just to mention a few. On the other hand, Germany imports metals, textiles, and food products among other commodities. By the year 2013, the most important trading partner of Germany was France accounting for 9.2% of the country’ s total exports.
The United States and the United Kingdom came second and third, each taking a percentage of 8.1% and 6.9% respectively (Bhimani, 2003, p. 76). On the other hand, the Netherlands is Germany’ s biggest importers with others like China and France taking second and third positions in rank. From the above statistics, France becomes Germany’ s most important trading partner because of the large amounts of exports and imports between the two countries. This paper is, therefore, an in-depth analysis of Germany’ s most important trading partner over a period of three years as well as looking at the trade relationship that exists between the two. The trade flows between Germany and France over the last three years Trade between Germany and France is of importance to both countries because they exchange imports and exports.
However, France is the biggest importer of Germany’ s exports while being the third-largest exporter to Germany. The table below shows the trade flows between the two countries from 2011 to 2013 (Destais, 2014, p. 1).
Baun, M. (1996). The Maastricht Treaty as High Politics: Germany, France, and
European Integration. Political Science Quarterly.
Bhimani, A, (2003). Management accounting in the digital economy. Oxford
University Press, Oxford.
Braun, H. (1990) "The German Economy in the Twentieth Century”. New York:
Bergen, J. (2014). 6 Factors That Influence Exchange Rates. Retrieved from
Destais. (2014). Germany’s most important trading partners 2013. Retrieved from
Duncan, R (2005). The Dollar Crisis: Causes, Consequences, Cures. New York:
Fletcher, I. (2011). Free Trade Doesn't Work: What Should Replace It and Why (U.S.
Business & Industry Council 2011 Edition
Hopwood, A, Leuz, C & Pfaff, D. (2004).The economics and politics of
accounting: international perspectives on research trends, policy, and practice, Oxford University Press, Oxford.
Krugman, P and Wells, R. (2006). Economics. New Jersey: Worth Publishers
Nine Stocks. (2012). How Interest Rates Affect Foreign Exchange. Retrieved from
Pritchard, A. (2013). Britain becomes Germany's biggest trade partner as Berlin-
London pact deepens. Retrieved from http://www.telegraph.co.uk/finance/newsbysector/industry/9816643/Britain-becomes-Germanys-biggest-trade-partner-as-Berlin-London-pact-deepens.html
Rising, D. (2014). German trade surplus hits record high in 2013. Retrieved from,
Samuelson, W. & Marks, S. (2003). Managerial Economics. 4th ed. Wiley.
Sullivan, A., and Sheffrin, S. (2003). Economics: Principles in action. Upper Saddle
River, New Jersey 07458: Pearson Prentice Hall.
Trading Economics. (2014). Germany Balance of Trade. Retrieved from