Economics and Fiscal Policy: An Analysis of Czech Republic and Germany

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

1ECONOMICS
Table of Contents
Task 1.........................................................................................................................................2
Task 2.........................................................................................................................................3
Answer a)...............................................................................................................................3
Answer b)...............................................................................................................................4
Answer c)...............................................................................................................................4
Answer d)...............................................................................................................................6
Task 3.........................................................................................................................................7
Answer 1................................................................................................................................7
Answer 2................................................................................................................................8
Answer 4................................................................................................................................9
Answer 5................................................................................................................................9
Answer 6..............................................................................................................................10
Answer 7..............................................................................................................................11
Reference list............................................................................................................................12

2ECONOMICS
Task 1
year export import nx exchang
e rate
2012 157958779210.8
3
147999131656.2
4
9959647554.59
19.5775
2013 160969652582.3
2
148900262724.2
4
12069389858.08
19.57058
2014 171545080091.5
3
158318631819.8
2
13226448271.71
20.7575
2015 151424360993.9
5
140216921591.5
4
11207439402.41
24.59875
2016 155347829200.1
8
140732272000.3
8
14615557199.80
24.43992
2017 171403399449.5
9
155843816395.5
0
15559583054.09
23.37633
Czech is mostly known to export machineries, cars, vehicles, telephones and various
equipment’s. In the year 2016, the gross domestic product of Czech Republic was found to be
4195 billion. The total amount of exports had been huge in the year 2015 and 2017. The

3ECONOMICS
value of the net exports are positive in nature which states that the exports were always
greater than the imports. The exchange rates will be floating freely against one another that
means they will be in constant fluctuation. There will be fluctuation in the exchange rate of
the Czech currency the Czech currency. The fluctuation of the exchange rate takes place
when there will be change in the market inflation and rate of interest. The exchange rate are
known to be floating freely against one another which states that they will be a constant
fluctuation. The rate of the foreign exchange rate is one of the most important means by
which the relative level of the economic health can be determined. The fluctuation in the
exchange rates which will be taking place when the country will be experiencing recession.
The political stability and the performance of the country also known to affect the fluctuation
of the exchange rate. The various protectionist measures which are known to exist in the
international trade are tariffs, quotas and subsidies. These kind of restrictions are imposed on
the imports of the foreign competitors. Government-levied tariffs are the chief protectionist
measures. As the member of European union, the Czech Republic known to participate
particularly in all free trade agreements which are entered by the European Union. The Czech
Republic is also known to maintain a Bilateral Investment Treaty with the United States of
America. The Czech Republic is the member of the customs union that allow duty free
exchange of goods from other barriers of trade. The exchange rates will be floating freely
against one another that means they will be in constant fluctuation. There will be fluctuation
in the exchange rate of the Czech currency the Czech currency. The fluctuation of the
exchange rate takes place when there will be change in the market inflation and rate of
interest.The customs rate is known to be the two column tariff based on the Harmonised
system. This particular country is also the member of European Union and the rules of
European Union need to be followed. The various types of protectionist policies are the
various environmental standards and the administrative obstacles. Export subsidies, voluntary