Question

Using the graph data, explain how membership in the European Union gives Germany a competitive advantage compared with the United States and China.

Answer 1

Gross national income of Germany is very low compared to the United States and China but the gross national income of European Union is not as low compared to other unions. Thus Germany enjoys a comparative advantage with membership in European union.

Explanation:

Gross national income of the European Union is $17.3 trillion which is not very low compared to that of the other unions but the gross national income of Germany is $3.7 trillion which comparatively very low to that of the other countries.

When trading as a part of the European Union, Germany has great trade and growth. But alone as a country, the gross national income of Germany is comparatively quite low compared to that of United States of America and China. Thus Germany definitely has a comparative advantage over other countries.