Business History of Germany and Germany’s Position within the EU
Introduction
Germany is officially known as the Federal Republic of Germany and located in the Western Central part of Europe; the government system takes the form of federal parliamentary republic. Germany is made up of sixteen states with Berlin considered as the capital city. Germany holds more than eighty million people with nation having the highest population among the countries in the European Union. It has been noted that the business history of Germany has placed Germany as the political and economic power in the European continent. Germany also is a historical leader in theoretical, cultural and technical fields in the European Union.
Main body
The economy of Germany is the fourth largest in the world considering the nominal Gross Domestic Product (GDP) and placed at the fifth position reflecting at the purchasing power parity (PPP). Germany is the global leader in diverse technologies and industrial sectors placing it as the third largest importer and the second largest exporter of goods in the world. Germany is one of the most developed nations in the European Union rich in political history and cultural history, the living standards of Germans is very high compared to other nations of the European Union.
History indicated that Germany is home to influential music composers, philosophers, inventors and scientist; a model that has shaped the business history of Germany and the position of the nation within the European Union (EU). Germany in 1957 was among the founders of the European Community, which was later transformed in 1993 to be European Union. Germany since 1999 is considered part Eurozone occupying the Schengen area. Germany is also a member of Council of Europe, United Nations, North Atlantic Treaty Organization (NATO), Group of Eight (G8 : Canada, France, Germany, Italy, Japan, Russia, United States and United Kingdom), member of the Group of Twenty (G-20) economies, Council of Europe and a member of the Organization for Economic Co-operation and Development (OCDE).
The economy of Germany is the largest within Europe hence playing a significant role in the European Union. Germany over centuries has been influential in spearheading globalization basing on its industrial capitalism. Surveys have indicated that Germany has limited raw materials, an indication that the country imports most of the raw materials. The only raw materials available in Germany are potash and lignite available in amounts considered significant. Most of the power plants in Germany are propelled by lignite, with the nation importing more than two thirds of the consumed energy.
The economy is mainly supported by the service sector accounting to seventy percent, industry sector accounts to twenty nine percent and the remaining one percent is supported by agriculture. The majority of the products are automobiles, chemical goods, metals and machinery; which are products of engineering. Majority of fortune companies in the European Union are based in Germany.
History has shown that Germany before the 1850s was behind France, Britain and Belgium in industrial development. In 1900 Germany became the global leader considering industrialization, closely followed by the United States and United Kingdom. It was argued that in the 1800s, the social structure of the Germans was poorly suited to managing economic development and entrepreneurship. The period was characterized with the conquests of Napoleon in the era of the French Revolution between 1790s and 1815. The period was characterized with diverse reforms in institutions which included doing away with the restrictions directed at feudal. Large estates ceased to be sold and the guilds in the cities were accorded minimized powers. Germany adopted a new commercial law that was very efficient and considerate on a number of variables. Germany still honored traditionalism as part ways of doing business.
There was a time when Germany was held up by bureaucracies basing on many restrictions and rules in churches, guilds, aristocracy and in the government. Such diverse restrictions and rules held back the spirit of entrepreneurship in Germany. In the 1830s and 1840s, some of the German states identifying with Saxony and Prussia among others reorganized agriculture and produced the much needed food which made the rural folks to venture into industrialization.
Industrial revolution experienced in Germany was initiated by the textile industry in 1834, which was made possible by doing away with Zollverein customs union tariff barriers. The revolution of the railroad came into force in the 1840s which helped in opening up new markets and jobs for professionals. The railroad facilitated middle level managers, engineers, machinists, architects and enhanced large scale production of iron and coal. Both the East Germany and the West Germany contributed to the economic takeoff of Germany. The history of Germany and its economy has been improved by the unification of East Germany and West Germany, which has made Germany stand strongest economically reflecting on the European Union.
Conclusion
Germany is the strongest economy in the European Union, having led for decades. Germany has stood strong even after other economies in the European region face budget cuts, sluggish growth and unending borrowing binges. Germany successfully came out of the global recession that affected the majority of major economies in the world. Germany is an influential player in the European Union.
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