Germany's Place in International Business
By Connor Botz
German Business at a Glance
From an American perspective, Germany seems quite small, but it actually has the largest economy in Europe in both strength and size, and is the 4th largest economy in the world in terms of nominal GDP ($3.42 trillion) (Investopedia). Besides domestic business, Germany is also a key global player in industries such as chemicals, machinery, vehicles, and household equipment, which has contributed to it being the third largest exporter in the world. In fact, every second euro contributed to Germany's GDP comes from international business dealings (Facts About Germany).
FDI
While German companies invest heavily in foreign operations, Germany has also become a key destination for foreign direct investment (FDI). These investments are valued at 458 billion euros and provide for over 3 million jobs.
Workforce
Beyond products and services, Germany has something else to offer the global economy: highly educated and skilled workers. State-owned colleges and government subsidies make attending university almost cost-free, allowing for the majority of high school graduates to achieve at least the equivalent of a bachelor's degree, if not more, without financial burden. An emphasis on education and self growth such as this has enabled German citizens to become experts in emerging fields such as electronics, engineering, and sustainability (BusinessCulture.org). The result of this emphasis is a decrease of unemployment by 40% since 2005 and a reputation for German workers as valued members of the global workforce (Export.gov).
Overall, Germany has established its place as a powerful player in international business through strong exports, foreign direct investment, and a skilled and well-educated workforce. More growth is on the horizon for Germany's business sector, and it will be interesting to see how this powerful economy influences the future of global trade.
To be honest, I don't really know much about Germany. I had no idea that Germany is the third largest exporter in the world. They are bigger that we think, especially within the international business they do with other countries.
ReplyDeleteWhen it comes to our globe, Jasmyne, no one knows much about ALL of its countries. It is pretty interesting to learn about them though. In terms of population, it helps to realize that three and a half Germany's fit into the entire US. Look at the world's logistics, automobiles, electricity/utility expertise, telecom, and electronics and you'll find Germany at the top of the producers.
DeleteI agree with you Jasmyne, I also did no know much about the size and the power that the Germans had and I wish that our mainstream media did a better job at looking outside the United States on the way that our Global Economy operates or maybe I am not following the right sources!
ReplyDelete