Mavi Boncuk |
You know what's happening in Greece. Italy, Portugal and Spain will be the next countries to weather the storm. But the dense river network in northwestern Europe (not to mention more roads and railways) affords that region much lower transportation costs. Thus, Northern nations have a significant competitive advantage in exporting. The one trick Southern nations had up their sleeves—devaluing their currencies to make their exports cheaper—ended with the adoption of the euro. The result? A Germany with a trade surplus, and an Italy with a national debt at 120% of GDP and more choppy water on the horizon.
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