GERMANY

Economic and political analysis of Germany

Economic and political analysis of Germany

Introduction

Germany with the Europe's largest economy is one of the attractive places for the investors. The study aims to uncover the secrete factors behind the successful German economy by analysis the political, economical and employee relations polices in depth. The recent studies show that after the great recession in 2008-09, the economy has gained its momentum in the current year. The Central Bank of Germany reports that in year 2013, there will be gradual growth in the economy. The last three months of 2012 was tough for the economy as it shrank by 0.6% and the overall gross domestic product showed slow growth throughout the year 2012.

The healthy labour market, strong competition and better external environmental factors are basis for this growing economy (Baker, 1981, pp. 88). Providing the best education to the labours and creating valuable human resources is the platform for Germany to create its distinguished capabilities delivering high performance. Such challenges needed to be aggressed in terms of the Human Resource policies that are currently in use. Unions also play an important role in this regard. This changing technology has also influences the business and its stakeholders, that will be discuss in detail. This will also help to understand the role of labour market reforms and other government policies from the political, economical and Human Resource perspective.

Background History

Germany stands first in Europe with the largest population of 82 million, has a significant importance in the history. Its territory ranges from the North Sea to the Alps in the South. Germany is also blessed by the Europe's three famous rivers; Rhine, Danube and Elbe. The history of Germany is rich with many extraordinary events those traces still can be seen in its culture. The democratic West and Communist East were reunited in 1989 and formed a federal republic (Berghahn, 2005, pp. 44). Bundestag are the lawmakers at National level and elected through votes after every four year. They have an important role in making policies for the economic welfare of the country.

Facts about Germany

The German economy is the third largest economy in the world and largest population of 82 million in the Europe. The Germany became a founding member of European Union in 1952. The official language is German which the widely spoken language in the European Union. It covers 356 854 km² of Europe's total area. Berlin is the capital city and the official currency is Euro. Germany is famous for its quality machineries and is the leading exporter in the world. The highly skilled labour makes Germany the world's best manufacturer of machinery, vehicles, chemicals and other kitchen and household equipments.

National business scenario in international economy context

Economic overview

With the leading position in exports of machinery and other equipments, the Germany holds a strong economic position in the world. In past few years, the changing demographics give a challenge to the long term growth in the country. This force the government to bring structural reforms to cater ...