Abstract
This research article explores the factors that make Germany’s industry very big and stable. The author used 5 different website articles to research about the industry in Germany. The author’s analysis shows that Germany have very big and stable industry because they have very famous car industry, have lot of workers and they work hard, and there are big scale and open trade with many countries. Even in a global perspective, the Germany’s industry is very powerful and incredible.
Introduction
Germany is one of the most famous countries in Europe. It is famous for beautiful castles like inside of fantasy story. In fact, 11.7 million of overnight stays tourists came to Europe in 2019. However, it is not the big reason that makes Germany’s industry big and very stable. According to the list of Credit Suisse, the wealthiest country in Europe is Germany and has the highest Gross Domestic Product (GDP). Furthermore, the difference between Germany with highest GDP and France with the second to the highest GDP is almost $120000 and Germany’s GDP is growing now! The author found three big factors why Germany’s industry is big and stable. The aim of this research is to explore the reasons that make Germany’s industry big and very stable..
One of the big factors that make Germany’s industry very big is Germany’s Secondary Industry especially its car’s industry.
In the Germany, a lot of famous car companies, such as Volkswagen Group, BMW, Audi, and Mercedes, are setting up head office. As stated by the website “Poponomics” (written by students of Economics at the University of Bath), and “Statista” (more than 23000 of company and 2000 of university used this website), in 2011, Germany produced 5.9 million cars, the highest number in Europe. In 2012, they produced 5.6 million cars, the force place in the world and 426 billion euros in total sales. In addition, one of the famous companies, the Volkswagen Group topped the ranking of “Leading motor manufactures based on global sides” with almost 11 million units sold worldwide. These facts show that Germany’s car industry is big part of Germany’s economy. It is very big and important reason why of Germany’s industry is large worldwide.
One of the big factors that make Germany’s industry very stable is the hard working German worker. According to website “TRADING ECONOMICS” (1.7 million of people around the world see this website), the average employment rate in Germany is 69.48 percent from 1992 until 2020. This score is second highest in Europe. The author thinks that having an average employment rate is very important because it means a lot to German workers to have a job for long period and it is the basis of the opinion that Germany’s industry is stable. Moreover, unemployment rate in Germany is very low too, as well as the score of employment. If a lot of workers in Germany work very hard, it simply means more labor and they are helping to keep the economy stable for a long time. Hard working German workers are second important reason that Germany’s industry is very stable.
The most important factor that proves Germany’s industry is very big and stable is the power and profit of big scale and open trade. In fact, Germany is the one of the three largest exporting nations, together with China and USA. In 2017, Germany exported goods worth 1,278.9 billion euros. The export quota (How much product was export in all of domestic production) was almost 40 percent, and over 50 percent in industry. This fact show that Germany’s trade is very big scale. One more important point of Germany’s trade is “Open Trade”. Germany is the most open economy among the G7 states. The foreign trade quote is currently 84.4 percent. That is the sum of imports and exports in relation to GDP.
By the way, The USA quote is 26.7 percent. This fact shows that Germany’s trade is very open. Open trade makes economy more active. So, it is very important to Germany’s industry and it is also connected to car industry. Big scale and open trade are supporting Germany’s industry strong and stable. Of course, many Germany’s car are export by big ship!
Conclusion
Facts stated above on industry and employment rate in Germany has provided three reasons why Germany’s industry is very big and stable. The GDP Score Indicator suggests that the industry of Germany is biggest in Europe and still growing now. Germany’s car industry is very famous and big in the world and a lot of famous companies are setting head office in Germany such as VM, BMW and Audi. This fact is the first reason why Germany’s industry is very big. Also, “TRADING ECONOMICS” shows that there is a high employment rate for a long period and few unemployed people in Germany. It is second reason why Germany’s industry is very stable. Furthermore, it is mentioned that Germany’s trading economy has a very big scale and is open. It is third reason why Germany’s industry is very big and stable. The author thinks that there are mainly three reasons. First, globalized car industry. Second, very hardworking German workers. Last, it has a very big scale and open trade. These three factors are very important parts of Germany’s economy. For these reasons, Germany’s industry is very big and stable and will be from now on.
References
- Financial and social rankings of sovereign states in Europe. (2020, July 29). Wikipedia. https://en.wikipedia.org/wiki/Financial_and_social_rankings_of_sovereign_states_in_Europe
- Tripathi, R. K. (2019, January 8). Questioning the claim of Germany’s ‘employment miracle.’ The Conversation. https://theconversation.com/questioning-the-claim-of-germanys-employment-miracle-106895
- Lone, M. M. (2014, July 22). German Cars: What Makes Them Special? Retrieved July 27, 2020, from poponomics website: http://www.poponomics.net/2014/07/on-german-cars.html
- Orth, M. (2018, July 16). Why is the German economy so strong? Retrieved July 27, 2020, from deutschland.de website: https://www.deutschland.de/en/topic/business/why-is-the-german-economy-so-strong-seven-reasons
- Germany Employment Rate. (2019, December 30). Retrieved August 1, 2020, from Tradingeconomics.com website: https://tradingeconomics.com/germany/employment-rate
