Using the data and your economic knowledge, assess the policies that could be adopted to improve the underlying rate of economic growth of the UK economy (25) The underlying rate of economic growth is the increase in the productive potential of the economy. It can be demonstrated by a shift outwards of the LRAS curve, as shown below where the increase from y1 to y2 demonstrates the underlying growth. In order to improve the underlying growth rate, supply side policies could be used reduce of spare capacity in the economy and increased capacity…
Economic relations in Europe
Germany is one of the world’s leading trading nations. The U.S. and Germany cooperate in an open and expanding world economy. Germany has the largest economy of the European Union which Germany is part of. The United States became Germany’s fourth largest trader of imports and the primary export market.
Germany exported goods worth approximately $125 billion to the U.S. and the United States exports goods worth approximately $50 billion. The trade relationship is driven by huge mutual investment. The direct investment of Germany in the U.S. was worth $255 billion. They focus mainly on manufacturing and wholesale, as well as finance and insurance.
The direct investment of the United States in Germany was worth $108 billion. U.S associates of German firms employ more than 670,000 American workers. The companies represent more than 1 million jobs in Germany and the United States. The U.S.-German Treaty of Friendship, Commerce and Navigation afford the United States investors national treatment and provides for the free movement of capital between the U.S. and Germany.
Taxation of U.S. companies within Germany is governed by a protocol on the prevention of double taxation.
France is the United States’ third-largest trading partner in the European Union. Between the U.S and France, trade and investment are very strong., over $1 billion in commercial transaction, on average, take place every day, including sales of the United States and French foreign associates.
The things the U.S. exports to France include industrial chemicals, aircraft and engines, electronic components, telecommunications, computer software, computers and peripherals, analytical and scientific instrumentation, medical instruments and supplies and b.....[read full text]