Discussion of Questions on Economic Systems - Essay Example

Both economies are known to tax their citizens heavily, though the French economy is also known to exhibit high spending when compared to the German economy. A considerable percentage of French industries are nationalized, while most of the major corporations in Germany are privately owned. The two economies also differ when it comes to their trends in growth, for the German economy has been registering steadfast growth over the past twenty years while the French economy has been exhibiting slow and somewhat declining growth (Gregory et al, 2004).

Both Germany and Britain are key players in international trade. Half of Britain’s GDP for example comes from both imports and exports. That notwithstanding, I presume true the fact that international trade is more important to the German economy than it is for Britain. My argument is based on the fact that Germany has over time been known as one of the world’s leading exporters, and has continuously maintained surplus trading with her partners (Buell, 2015). Most of Germany’s trade partners are EU members, and analysts hold the opinion that well over a fifth of the German labor market, depends on international trade. Germany majorly exports automobiles, chemicals, food products, and electrical equipment. At the same time, it imports raw materials and semi-finished products.

The overall impact of the European Union on the German economy has been positive, as the Eurozone has made the German economy stronger and highly stable. This is major because Germany has registered high economic growth since the EU came into play, with its real gross domestic product standing at more than 37 billion Euros annually over the last twenty years (Buell, 2015). At the same time, German exports have become more competitive within the Eurozone than when the country was using its currency; a fact that has made Germany more dependable within the Eurozone. Nonetheless, events such as frequent bailouts of poor-performing economies have slightly prevented Germany from realizing the maximum growth possible.