10 Lower In Germany And Industry example essay topic

The product to be produced: Furniture (inexpensive) Germany is Europe's largest economy and most populous nation; it is leading member of the continent's political and economic organizations. It is located in Central Europe and is bordering with the Baltic Sea and the North Sea, south of Denmark, between Poland and Netherlands. Its total area is 357,021 sq km that is about 27 times smaller than that of the United States. In fact it is slightly smaller than Montana. The land area is 349,223 sq km, water - 7,798 sq km. Its population is 83,251,851 (July 2002 est.

). Due to the product the target market is people aged 18 to 64 (regardless sex). In Germany it is about 60% or 501100. German climate is temperate and marine. If compare that to the climate of the United States, New Jersey in particular, it is somewhat similar. The average temperature in Germany is a little bit lower and more extreme (hot summer, cold winter), but the amount of precipitation during a year is considerably less due to the Ocean proximity.

The type of the governments is federal republic. Capital of Germany is Berlin. Chief of state is President. Since 1 July Johannes RAU occupies this post. German economy is primarily market-based. During the 90's it turned from abundant and technologically mighty to relatively feeble in its execution, though it refers mostly to the eastern Germany.

The integration and updating of its economy proceeds is a long-term problem at a high price to the country. Every year about $100 billion are spent to assist it. The process of east catching up with west is expected to take up to 15 years. In the same time Western Germany has a highly urbanized and skilled population that enjoys excellent living standards, abundant leisure time, and comprehensive social welfare benefits.

Corporate restructuring and growing capital markets establish strong basis to conform the far-sighted missions and challenges of European economic integration and globalization. CIA World Fact book states that Germany purchasing power equivalent is $2.174 trillion (2001 est.) that is not little for the country of such size and population. With GDP real growth rate of 0.6% its purchasing power parity appears to be $26,200. Considering the comparison with the US, an interesting thing comes to light.

With the GDP real growth rate of only 0.3%, the purchasing power parity is $36.300. To find out more about the market the firm is coming to it is important to compare its structure to that of the US market. The composition of GDP in Germany is much alike in the States. The slight difference that matters is that the rate of cervices is about 10% lower in Germany, and industry is 10% higher (71% and 28% respectively). Though population below the poverty line is not an issue to talk about in Germany, the unemployment is still a great problem. In 2001 it amounted to 9.4% (5% in the US).

The aging population of the country and its continuously growing unemployment led to the social security expenditures exceed greatly workers dues. New taxes introduced in the year 2001 rendered little assistance in escaping the recession in international trade. Due to this slump and inflexibility in the structure of the labor market, including rigorous adjustments on lay-offs and the setting of wages on a national basis, domestic demand swayed as unemployment started to ascend chronically. Germany is not poor in natural resources. The most important of them are: arable land, timber, natural gas, iron ore, copper, coal, uranium, nickel, potash, lignite, and salt. In addition to that it has very few natural hazards.

One that is worthy mentioning is flooding. Those natural resources are the basis for the industries developed in Germany. The country is one of the most prominent producers of cement, chemicals, vehicles, machinery, machine tools, electronics, food and beverages; shipbuilding; textiles as well as coal, steel and iron.