Paper Example. Germany and Globalization

Globalization has been regarded as the increasing cultural, political, social, and economic interrelationships between different countries on a global scale(Dauth,2018). This interrelationship is caused by trade, information, and technology among other reasons. Globalization has evolved and become different from previous eras. It has taken many different forms such as technology and the economy. Germany just like any other country has and is continuing to undergo globalization and feel its changes. Germany started to experience the effects of globalization when the Berlin Wall collapsed and the Soviet Union fell. This was a unifying moment for Germany as a whole sparking industrial and technological evolutions across countries of Europe and the world. This paper will look into the impact of Germany on globalization from an economic and technological perspective.

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The introduction of globalization in Germany not only brought a sense of change in the economic and technological sectors but also on members of society. German society understood clearly that through these changes, their economic and technological success was tied to the global economy. In terms of economy, Germany has had to battle with the costs of unification in the past decade or so. Germany had experienced a steady decline as compared to other major European economies due to the said costs.

The finances the government made regarding the west-east of over a billion euros a year caused significant damage to the economy of the country. The significant rise of labor costs for a nonwage was attributed to workers financing payments made to the west-east through social security funding. The Implementation and adoption of the 1:1 rates of exchange between the seemingly worthless East German mark and its Western counterpart made sure industries I the East remained uncompetitive.

Currently, Germany has greatly benefited from globalization. Through globalization, Germany has seen an increase in competition in the industrial sections for locations. The amount of investment is influenced by the type of location by these countries because they are constantly competing with each other on a global scale. Germany has continued to show its influence on globalization through the growth of its economy. Research shows that more than USD 430 billion has been invested by foreign companies in Germany.

This has in turn pushed German companies to the advantage of political and technological aspects to be more competitive globally as well. Germany’s current economic impact on globalization has continued to be shown through its broad investment abroad. These investments have led to the creation of employment both domestic and foreign. This has led the country to rank third in the global Private Equity industry, despite this, the investment market has been left behind trailing significantly other European big wigs such as the USA. This has led to calls for significant change in areas such as Private Equity and broadening of investment in the economy.

In terms of technology, Germany has along with history. Germany had a prominent scientist even before the era of globalization happened. More than a decade ago, technological advancements in key areas of the society such as in the finance sector, in entertainment and all other industries including health care were not advanced. Germany influenced technology along with other big countries such as the USA, China, Russia among others in a big way through globalization.

Due to Germany’s collaboration with European union, the exchange of ideas and personnel led to the invention of modern gadgets such as the electric train, which led to easier ways of boosting the economies through automation of the industrial sector and also the agricultural sector. Through these collaborations, many more technological breakthroughs such as the building of the LHC at Cern to aid scientists in research and development.

Process and stages of globalization that Germany underwent.

Germany underwent two stages of globalization, the old globalization of the 1800-1900s and the new globalization that is happening in this century. Germany through the old globalization was characterized by the inventions of steamships, and railroads which proved very economical in transport and the economic sector. With the trade and production happening in different countries, it made it very convenient for trade to prosper.

Germany in the 19th century had already established itself as an economic powerhouse. Through its highly skilled labor and the adoption of globalization, Germany led the way in steel, manufacturing, coal, and chemical industries and exported to countries like the USA, U.K, and Switzerland among others. This early globalization brought with it phases, or transitions that Germany coped with such an immense increase in trade and the production and consumption companies being in different countries (maesse 2018).

Germany, just like every other country in the 21st century is currently undergoing new globalization. This globalization is characterized by a process known as offshoring, where different companies have their production lines, broken up, and are distributed in different geographical places. The adoption of standardizing measures to universally be accepted by the global community has been carried out and all countries including Germany is currently undergoing this. This process has gradually resulted in what is known called a global trade system. Through this revolution, it brought the ICT revolution which in turn has created a new

world, the flow of information bloomed internationally.

Due to the adoption of globalization by the world, its impact on trading has been significant. The emergence of transnational corporations (TNCs) which are essentially corporations that have their operations in different countries. These corporations in Germany have contributed to trade agreements and bilateral partisans according to various studies carried out by finance and trade students( YU 2016). TNCs in Germany have enlisted the help of their government to further or protect their interest when it comes to how they operate. They are a very powerful force that influences how globalization happens in Germany. They achieve this by creating employment at home and in foreign countries, help in extracting natural resources among other benefits.

Technology has played a pivotal role in globalization. Through the adoption and creation of advanced gadgets, various industries have seen their overall output and profit margins increase significantly. In sectors of the industry such as in air transport, in chemical manufacturing, telecommunications and wholesale and retail trading in Germany have seen a tremendous rise in their output creating multinational corporations hence fostering in the globalization influence that Germany has on the world scale.

Companies such as Lufthansa have become the biggest in Germany through the adoption of technology. Technology has been used to mainly reduce the cost of production and operation and increase performance quality. Through reservation services and automated engineering, the section has led to the company being the most used in goods delivery and people transport as well. Another company in Germany is Deutsche Telekom AG, which is the largest telecommunication company in the country. The growth of this company is mainly attributed to IT, this has greatly lead to the global communication and effective distribution of information across the world hence furthering the globalization agenda and cementing Germany’s influence in it.

References

Dauth, W. (2018). Adjusting to globalization in Germany.

Yu, H. (2016). Solar photovoltaic energy policy and globalization: a multiperspective approach with case studies of Germany, Japan, and China. Progress in Photovoltaics: Research and Applications, 24(4), 458-476.

https://onlinelibrary.wiley.com/doi/abs/10.1002/pip.2560

Maesse, J. (2018). Globalization strategies and the economics dispositif: Insights from Germany and the UK. Historical Social Research/Historische Sozialforschung, 43(3 (165), 120-146.

https://www.jstor.org/stable/26491531