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How economics influence a country - Essay Example

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The economy is fueled by a vibrant industrial sector that specializes in machinery and industrial products. However, the economic future of German is not as promising as the Asian tigers…
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How economics influence a country

Download file to see previous pages... Germany has a charming and promising standard of living. Germany has the best living standard in Europe. Characterized by a responsive authority, joint public, private partnership and the best service based economy; Germanys living standards are nothing short of perfect. The infrastructure is at its peak with elaborate means of transport. Germany has the best health policy in Europe and the mortgage industry is at its peak. As a result, Germany, emerges as one of the most beautiful and habitable places in Europe. The glory and splendor of Germany, however, has a tainted future. The economy heavily depends on its vibrant industries. These industries need a high input of human labor (office 164).
The shrinking and aging Germany population is not in a position to handle most expansion and growth. The industries result in labor importation a very expensive undertaking which slices away a large proportion of the profits earned. In return, the feasibility to undertake any commercial activity is dark due to the high cost of labor. In the next 50 years, Germanys population will shrink by 20%. In all aspects, even if the economic growth rate maintains at a relative 115, the country will eventually lose out on the cost of production. Currently, the per capita income of Germany stands at $388 per head. Germany has the highest per capital rating in Europe. Increase in the cost of production ultimately leads to costly goods and services and the per capital income fall sharply. Currently, Germany offers a good work climate for potential workers. The balls are changing fast for the country as the south East economies pick on the development trend. Posing Germany against Malaysia, it is worth noting that Malaysia is the very reverse of Germany. The Malaysian population is exploding and so is its workforce. Currently, Malaysia per capita income stands at $9000 per head (East Asia ...Download file to see next pagesRead More
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