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De Guzman, Quinn Janelle S.

De Lemos, Cyra Nina C.


Fajilan, Kailah Kristianne G.
Gabuco, Honey Grace N.
Galarido, Ma. Jhemica O.
Imbat, Edelyza S.
BSA2E

GERMANY
Written Report

Location
Located in the continent of Europe, Germany covers 348,672 square kilometers of
land and 8,350 square kilometers of water, making it the 63rd largest nation in the
world with a total area of 357,022 square kilometers.
Germany is located in western Europe, bordering the North sea between France
and Poland.
Germanys capital city, Berlin, is located in the Northeastern part of the country.

Germanys involvement with World War 1


Two stages comprise World War One, the conventional warfare and the war of
desperate expedients. Germany was included in the Central Powers, along with
Austria-Hungary, Turkey/Ottoman Empire and with other smaller countries.
Germany is considered one of the central powers
Since Bismarck times, Germany had been planning to invade every European
country. One of this is the Schlieffen Plan, which calls for quick actions to destroy
the enemy.

Germanys economy for World War 1

The Schlieffen Plan, shows how Germany planned its economic mobilization .
Germans believe that the war would only happen for a short period of time, and
questioned that they will gain something within the war, thats why the only
preparation theyve prepared was limited to stockpiling of weapons.
However, the war lasted longer than what they have expected, military demands for
weapons were much greater than what they have already stocked. And along with
Germans dispute with the Allied powers, they have been increasingly cut off from
the access with the world trade. This result to a raw materials and food supply
crisis which demanded a much greater alteration of their economy.
The alteration of their economy focused on State intervention which focused on two
areas which were experiencing the greatest shortages: the supply of raw materials
for the arms industry and of the food supply for the population.
Hindenburg Program changed the Germanys approach to mobilization. This
program wanted ammunition and weapons production to move at the same pace.
Under the supervision of the Third Supreme Military Command, mobilization for
weapon production was expanded regardless of costs. And industry was drawn
into the war effort than it was before.
These economic changes, cause two complex developments: the readjustment of
the relationship between state and industry and the restructuring of production.
Production remained in private ownership, but the state increasingly supervised
raw materials and manpower, production and sales, and prices and wages. War
corporations and the War Office helped the state expand its intervention in the
wartime economy. Involvement not only affect requisition of all raw materials
needed for war, it also tried specifically to expand the capacities of the armament
industry and optimize production by subsidizing the building of new factories,
controlling investments and closing down small companies. State intervention
played a more indirect role regarding import controls and the management of
scarce resources. Allocating urgently needed raw materials, with the occasional
threat of requisitioning, served as effective leverage when coordinating activities of
private enterprise and extending state control of prices and profits.
State regulation together with market forces primarily aimed to restructure
production in order to manufacture a maximum amount of weapons and
ammunition. This put civilian industry and agriculture at a disadvantage and led to
shortages in raw materials and in the work force.
The German economy, suffered the effects of the Great Depression with
unemployment soaring around the Wall Street Crash of 1929.

Germany during World War 2


Germany became covered in debt due to the Treaty of Versailles in which the
winners of the war (Britain, France, the United States, and Italy) wanted the
Germany to pay for the damages brought by war.
Although the Germans were broke, they initiated the war because they feel
mistreated for the decision made within the Treaty
During this period totalitarianism began to rise, because other nations saw that
those with this kind of government experienced little damages to war, and they are
still able to prosper amidst the war. With this kind of ideology, Adolf Hitler governed
Germany.
Germany focused on these three goals for world war two, they wanted to Expand
German territory to all of Europe
They also wanted to spread the ideology of Nazism, in which they believe that
Aryans, are the greatest race, and they annihilate other races.
They also wanted to eradicate all people of Jewish faith within Germany, because
they believed that Jews hinder their growth, this lead to the Jews holocaust.

Economy during World War 2


Germany used forced labor, this is one of the traits we can see from
authoritarianism.
Adolf Hitler regarded economic issues as relatively unimportant and he focused
more on high military spending.
During the Hitler era (1933-45), the economy, supported high government
subsidies to those sectors that Hitler favored because they gave Germany military
power and economic autocracy, that is, economic independence from the global
economy. Hitler claimed to have achieved full employment in Germany by 1939.
Hitler's Germany had long since absorbed its unemployment by building arms and
German infrastructure.

Germany during Cold War


Germany was divided into four zones of Allied military occupation: American,
French, British, and Soviet. The old capital of Berlin was also divided into four
zones, but Berlin itself remained inside of the Soviet zone.
The East German government was formed into a centralized and dictatorial regime
while the West German government became a democratic one focusing on
capitalism.
West Germany prosper because of the Marshall Plan and the Truman Doctrine. In
the marshall plan, U.S. sent economic aid to some parts of Europe. And In the
Truman Doctrine, in which U.S. help states going through a struggle for freedom
against their oppressors.
West Germanys economy prosper, they exhibited the economic miracle, and
focus on their steel and coal industries, which is up until now are the industries they
are known.
Other East Germans knew about this and wanted to transfer to the West, alarmed
by the situation the East German government constructed the Berlin Wall.

Germany after its reunification


Many economic effects occurred after Germanys reunification. First, there were
initial obstacles such as the need for restructuring businesses from East
Germany. Second, the clarification of ownership rights, originally private property
was one of the fundamental keys for capitalism in West Germany, but East
Germany is having difficulties breaking down the rights of private property.
Productivity affected the economy of Germany after reunification because their lack
of business production negatively affected the GDP. Upon reunification, East
Germany only contributed eight percent (8%) of the total GDP of the nation. The
productivity in East Germany was weakened greatly because of the high
unemployment rate, and the new regulations East German businesses had to
follow.
Surprised by the decrease of production, West German authorities began to do
large-scale job training for these citizens in order to reduce unemployment. This job
training helped the trainee participants find a job or find a better paying job than
they had before. West Germany also gave subsidies to the East for them to keep
up and recover back its GDP.

Natural Resources
The key natural resources of Germany include timber, natural gas, coal, lignite,
uranium, iron, ore, arable land, construction materials, potash, nickel, salt and
copper.
Globally, the country is:
i. A leading producer of lignite.
ii. The second largest producer of refined selenium.
iii. The third largest producer of kaolin.
iv. The fourth largest producer of sulfur.
v. The fifth largest producer of potash.
vi. The sixth largest producer of refined copper.
vii. The seventh largest producer of crude steel.

- Few domestic natural resources


- Germany relies principally on fossil fuels as sources of energy.
- 40% of German energy consumption comes from petroleum, largely for trucks
and automobiles
- 30% comes from coal, half from lignite or also known as brown coal and the
other half from anthracite
- Natural gas provides about 17% of energy consumption while nuclear energy is
about 10%
- Other sources of energy are relatively insignificant. Most production is in private
hands.

Factors affecting Economic Development of Germany


1) Euro
Euro is one of the factors that contributed to the economic success that
Germany has achieved. There are two main points why the euro impacted greatly
Germanys economy: it was able to boost the countrys exports and it provided a larger
market to sell goods. The euro was first introduced on January 1, 1999. During this
time the euro was used in trading but only for international transactions between
European countries in the EU. The domestic transactions used within a specific
country used the countrys local currency. Like for example, transactions within
Germany are used with their local currency, which is the Deutsche Mark, while
transactions within fellow European countries are used with euro. But on July 1, 2002
the euro finally became the common currency used by certain European
countries. Up until today, transactions made whether domestically or internationally,
euro is now the single currency used.

Having a single currency led to a boost in Germanys exports. This was


made possible because of the weakening of the euro. A currency considered to be
weak is beneficial to a country that relies greatly on exports. This is so because foreign
consumers will think that buying goods from a country with weak currency is less
expensive than buying from a country with a strong currency. There is no
discrimination on what type of currency is greater than the other. It all depends on
what type of currency will work and be beneficial to a country. Like in the case of
Germany, a large percent of its industry is focused on manufacturing. So, having a
weak currency made their exports boom. Foreign consumers are now seeking to buy
products from Germany since the former will spend less when they buy from the latter.
This will result to an inflow of funds in Germanys economy and exports are what is
important in measuring the growth of a nation. In the computation of the GDP (GDP =
C + G + I + X - M) we can see that exports, represented by X is added while imports
which is represented by M is deducted. This just means that Germanys high GDP
was greatly influenced by its exports, considering the countrys industry was mainly
manufacturing of products.

The last point of why the euro became a factor of Germanys success is
because it provided Germany a larger market to sell their produced goods.
Because many foreign consumers would now want to buy goods from Germany due to
the prices being low, manufacturing industries in the country will have to satisfy the
demands of their consumers. Thus, hiring more workers to increase the number of
their production. That is maybe one of the reasons why Germany has a low
unemployment rate.

2) Education
Germanys education system differs from most of the countries in the world
because it uses Dual System. As the name suggests, its a two tiered training
program: one part is in the vocational school and the other part is an apprenticeship at
a company. It focuses more on skill development, because theories learned in
school, can be directly applied in the company. This education system is very flexible,
because training time and part time training are also possible. This means
individualized arrangements can be found for anyone. The good thing is you get
certified training and you are earning money at the same time.

Cooperation between Mittlestand and vocational schools


Companies must qualify first certain criteria made by the Chamber of
Industry and Commerce in order for them to train. The good this is that students learn
and at the same time gains the skills at the company. Students acquired knowledge
must be applied to practical use and will lead him/her to be classified as a full-pledged
employee.

Best form of recruitment for companies


Because of the training of students in certain companies, this will lead them
to easily know who are the possible employees from the students that theyve trained.
This limits the time that they should have consumed in finding employees that have
their demanded skills because they have already observed their performance from
their training in that company.

Because of this type of education, knowledge acquired from school are


practiced in the real business world. This leads them to have high-skilled workers that
contribute to their growing economy.
3) Labour and Employment
German Labour and Employment Law
also known as Employee protection law
For the employment is strongly biased in favour of the employees.
Under this law there is no such thing as employment at will.
German employees must have written employment contract that
reflects the key aspects of their employment.
Although an employment contract unlimited in time is typical, agreeing
on an employment contract with a limited term is possible.
A limited term employment contract is permissible only when there
is an objective reason for the limitation, a period of up to two years,
without restrictions.
Germans follows the five day work week
Under a five-day week, the average working time is between 35
and 40 hours. The daily productive working time generally may not
exceed eight hours.
Working on Sundays and public holidays is generally prohibited
However, the German law on working hours provides for several
exceptions in which working on Sundays and public holidays is
permitted although prior approval by governmental authorities.
Benefits received by employees under German and Employment Law
Statutory claim for 20 working days vacation per calendar year.
However, it is more typical for an employee to receive between 25
and 30 vacation days per calendar year, depending on seniority
and the type of business.
Full salary payments for 6-12 weeks in case of sickness of an
employee.
Full paid maternity leave 6 weeks before expected due date, during the
employees pregnancy and during a period of 4 months after childbirth.
German Social Security System
It is mandatory that all employees are insured by the German
Social Security System. Health, home care and nursing,
unemployment and pension insurance premiums are paid equally
by the employer and by the employee (50% each). Premiums
amount to approximately 22% of the employees gross salary for
each the employer and the employee.
German employment termination law
regulated by various codes and is intended to give the employee
maximum protection against unfair dismissal
German Termination Protection Act
Employee may be terminated only for these particular reasons:
a) personal situation of the person to be dismissed (e.g.,
long-term sick leave),
b) reasons related to the behaviour of the person to be
dismissed (e.g., theft or fraud to the detriment of the
employer)
c) reasons related to the business of the employer (e.g., the
employers decision to restructure the business, which reduces
the number of positions)

German Work Habits


Germans have an extremely strong work ethic.
Work means work. You are unlikely to find Germans in the
workplace messaging their mates, finding friends on Facebook
unless, of course, these activities are related to their work
Germans are keen on rules.
The Germans work well within the confines and constraints of
rules, systems and procedures. This aids consistency and
conformity and helps to minimise uncertainties.
Germans are highly task-focused.
The task is king in Germany, and everything else is
subordinated to that.
Work life and private life is very clearly segregated.
Germans are masters of direct communication.
The Germans prefer communication which is to the point and
goal-oriented. There isnt the need for pleasantries.

Business Ethics
Integrity and loyalty
One of the highest praised traits in German business ethics is
the ability to have personal integrity and to be loyal to your
associates. Backstabbing someone, lying or corruption are not
well received from the average German.
Work loving ethics
Germans love their work and that being employed and working
hard are core principles in the self-confidence of a German
person.
The importance of seniority
It is best to stick with one German employer for a longer amount
of time than trying to run up the ladder to a higher position in the
shortest amount of time possible.
Try showing your employer your skills and loyalty, integrity and
hard work on a long term basis. He will be impressed.
Specialization over generalization
It is more likely that the worker keeps his job because he knows
it better than anyone. This is a consequence of the German
business ethics principle of safety comes first.
The importance of time
Germans love to be punctual.
They expect punctuality from other people, even if they come
from other countries.
High prosperity
Germany is a pretty rich country compared to most Asian
countries, where freelancing is popular.
You are extremely unlikely to die of hunger or thirst anywhere in
Germany, even without having a job.

4) Industry
When did Germany industrialized? Industrialization began in England in the
th
late 18 century, and Germany followed in the industrialization process in 1835. The
start of the Industrial Revolution. The focal point of the Industrial Revolution was
the establishment of the Zollverein, the German Customs Union. The impact of
this were:

Trade barriers between German states were eliminated and this paved the
way for bigger and more attractive market producers. Mining areas boomed as
demand for coal rose during this time, and this gave rise to higher incomes to the
population.

Germany built railroads that linked its growing manufacturing cities such
as Frankfurt with the Ruhr Valley Coal and Iron ore deposits. With the rail, mining
companies could easily and quickly transfer the coal for use in the factories. The
importance of the railway to Germany also prompted German companies to research
and build their own locomotives. This allowed the steel, mechanical and electrical
engineering industries to flourish.

Advances in the iron and steel industry included the steam engine and
the locomotive, which combined to create a new and more effective way to move
product to consumers, as well as move troops to battle quickly.

By the late 1800s Germany became an industrial king and a military giant.
The ample resources of coal and iron, as well as an educated and dedicated
workforce, created a strong base for the rapidly growing economy. Although Industrial
revolution promoted large economic growth, there was a significant increase in child
labor throughout Europe.

In the 19th century Germany began a stage of rapid economic growth and
modernization, led by heavy industry. By 1900 it had the largest economy in Europe.

The glory of German industry is not in the big firms that are well known around
the world, such as Daimler-Benz, Volkswagen, Siemens, or Bayer. It is in the small-
and medium-sized firms that constitute what the Germans call the Mittelstand. It has
been widely accepted to mean companies that employ fewer than 500 workers. Such
firms constitute 98 percent of all German companies, hire 80 percent of all employees,
are responsible for a significant share of exports, and provide one of the firmest
foundations of the middle class. The government has supported and furthered the
Mittelstand , in part for political reasons, but also because it makes a crucial
contribution to the economy.

The single most successful German industry is mechanical engineering, with a


total turnover in 1991 of DM240 billion. Unlike many industries in Germany and
elsewhere, it is dominated by small rather than large companies. It includes over 4,000
firms throughout Germany. Only 3 percent of the companies have more than 1,000
employees. German mechanical engineering has a range of more than 17,000
products. Almost two-thirds of the products are exported.

The best-known industry and the second-largest, with a turnover of DM217


billion in 1991, is automotive manufacturing. Such companies as Daimler-Benz,
Volkswagen, and Bayerische Motorenwerke (BMW) are known throughout the world.
Almost half of all German-produced automobiles are exported, mainly to other EU
members and to North America. Being home to the modern car, the automotive
industry in Germany is regarded as one of the most competitive and innovative in the
world, and is the fourth largest by production.

Electrical engineering ranks third in importance among German industries,


with a turnover of DM207 billion in 1991. The biggest single firm is Siemens, although
Bosch also ranks among Germany's largest companies. Products range from giant
electric generating turbines exported all over the world to smaller electric engines and
some consumer goods.

The chemical industry, with a total output of DM166 billion in 1991, is based
principally on three large corporations that have been leaders in the field for 100
years--Hoechst, Bayer, and BASF. There are also many medium-sized companies.
About one-half of the industry's products are exported.

Other important industries are the traditional German industries of steel and
coal mining, both heavily subsidized and still large employers. Precision engineering
remains a strong area.

Aerospace is a small but growing industry, also heavily subsidized, and


German companies often join with companies from other EU countries--such as Airbus
and military aircraft production.

By the end of 19th century, Germany armed with both knowledge and
experience, German engineers invented the dynamo (generator).
Germany Now
Education system
education system is different from other countries
produces high-performing students

- Children aged three to six, may attend kindergarten. After that, school is compulsory
for nine or ten years.
- From grades 1 through 4 children attend elementary school (Grundschule), where the
subjects taught are the same for all. Then, after the 4th grade, they are separated
according to their academic ability, self-confidence and ability to work independently
and the wishes of their families, and attend one of three different kinds of schools:
1. Hauptschule- general school
Offers lower secondary education
Span: five to six years
2. Realschule- outperformed by those attending gymnasium but did better than
haupstchule.
3. Gymnasium- most advanced type of school
Generally public, state-funded schools
Span: nine years but the government are planning to reduce it to
eight years.

Labor and Employment


Labor market is on fire.
Increased Competitiveness
Excellent Workforce
Innovative Power

- Not long ago, Germany was derided as the sick man of Europe. In the late 1990s
and early 2000s, Germany was growing more slowly than any other European
countries, its unemployment rate spilled into the double digits. The countrys exports
reached nearly $1.3 trillion in 2016. For three years now, the German government has
been running a budget surplus. Figures for 2016 forecast a surplus of $25 billion.
- 81 percent of the German population have been trained to university entrance level or
possess a recognized vocational qualification above the OECD average of 67 percent.
An investor friendly social-market economy promotes stable labor relations.
- Germany is Europe's 1 location for research. German R&D is backed by billions of
euros in annual federal funds, helping to make Germany the world's leader in
innovation.

Industry
largest national economy in Europe
highly developed social market economy.
world's fifth largest consumer of energy
established a polycentric network of high-speed trains.
- It the largest national economy in Europe, the fourth-largest by nominal GDP in
the world, and fifth by GDP.
- Germany is the third largest exporter in the world with 1.21 trillion euros ($1.27
trillion) in goods and services exported in 2016.
- The economy of Germany is the largest manufacturing economy in Europe and it
is less likely to be affected by the financial downturn.
- Germany was Europe's largest consumer of electricity, totaling 512.9 terawatt-
hours. Government policy promotes energy conservation and the development of
renewable energy sources, such as solar, wind, biomass, hydroelectric, and
geothermal energy.
- The InterCityExpress or ICE is the most advanced service category of the
Deutsche Bahn and serves major German cities as well as destinations in
neighboring countries. The train maximum speed varies between 200 km/h and
320 km/h (125-200 mph). Connections are offered at either 30-minute, hourly, or
two-hourly intervals. German railways are heavily subsidized, receiving 17.0
billion in 2014.
- Germany is also the biggest creditor in the currency union and currently
contributes 190 million euros, more than any other eurozone country, to the
European Stability Mechanism, which essentially finances the bailouts of other
nations.

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