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Germany and its Economy

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Introduction

Germany and its Economy Known as the "fair" capital, Germany lies in the center of Europe and in the center of the European home market. Approximately two thirds of the top international fairs take place in Germany. Germany is successful. A leader in world trade, Germany is the third largest economy in the world and the biggest market in Europe. It wasn't always this way though; European power struggles wounded the country in two devastating World Wars in the first half of the 20th century and left the country dominated by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945. Germany has been through all of the phases of the business cycle many times. It even suffered immense depression after World War One in the early 20th century. The Treaty of Versailles dug a deep hole in Germany's economy because the Allies had gotten a little greedy with their revenge. ...read more.

Middle

They also have a large agricultural industry with products such as potatoes, wheat, barley, sugar beets, fruit, cabbages, cattle, pigs and poultry. Germany is also among the world's largest and most technologically advanced produces of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages. They make an estimated 506 billion dollars every year in exports and spend 472 billion on imports. The current inflation rate in Germany is around 2.4% and the unemployment rate is 9.4%. Income is measured as the value of an economy's gross domestic product divided by its population. The purchasing power parity was an estimated 2.2 trillion dollars with parity per capita of $26, 200; the growth rate of GDP was 3% from 2000 to 2001. GDP GROWTH 1995 1996 1997 1998 1999 2000 2001 GDP2 (euro billions) 200.82 207.30 210.70 212.68 217.02 219.23 219.01 change on prev. yr 4.5 3.2 1.6 0.9 2.0 1.0 -0.1 The condition of scarcity is universal. ...read more.

Conclusion

Prices fluctuated strongly and were represented by the price changes in oil. I think that, economically, Germany is doing well other than a few scarcities. Because they are the third leading economy in the world, they rank up there with the U.S. and France. Germany has a few shortages in labor and energy, but overall they succeed in exports and GDP growth. Germany is an economy not much different than our own. Besides both being defined as market economies, Germany and the U.S. also share the same periods of business cycle changes. They both experienced the Great Depression in the 1920's and '30s and are even witnessing a recession now. I would agree that an economy is just like a business. An economy goes through the same downfalls and good times just like a business, an economy experiences depressions, recessions, recoveries and prosperities and the goal of an economy is to have a surplus of money while supplying its citizens with needed goods and services. ...read more.

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