In 1970, £1 exchanged for over 8 deutschmarks (DMs). At the time of the formation of the euro in 1999, the exchange rate was £1 = DM2.78. Why do you think this might have been the case? Did this weakening of sterling against the DM mean that in 1999 British goods were very much more competitive with German goods than they had been in 1972? If not, why not?