Are Germanys exports too dependent on the euro/dollar exchange rate?
The USA is the biggest market for German products outside the European Union and the most important recipient of German direct investment. Germany exports an above-average proportion of high-tech goods such as luxury cars and highly specialized machinery. A low euro exchange rate benefits such products, too, but not as much as products that are produced in many places, i.e. where the price is the main factor. So the weak euro might make life a little easier because products that are “made in Germany” will be cheaper in world trade. On the other hand, a low euro exchange rate makes purchases on the important US market more expensive. Fred B. Irwin is President of the American Chamber of Commerce in Germany, the oldest bilateral trade organization in Germany, which promotes economic relations between the two countries. It has about 3,000 members. Arab world Mr Al-Mikhlafi, what comes to mind today when people in the Arab world read “made in Germany”? And what do you personally associate
