Saturday, March 15, 2008

Unit 3: The problems of an appreciating currency

The appreciation of the euro is proving to be a big problem for German exporters according to this BBC clip

http://news.bbc.co.uk/player/nol/newsid_7290000/newsid_7295800/7295866.stm?bw=bb&mp=rm&asb=1&news=1&bbcws=1

a) Why is an appreciating euro a problem for German exporters?
b) What options does the firm face as a result of this appreciation?
c) What actions have they taken to remain competitive?
d) To what extent do you believe their strategy will prove to be successful?

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