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The Demographic Challenges of Germany and Theit Impact on Economy - Case Study Example

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The author examines the demographic challenges of Germany and their impact on the economy and states that policies such as those being implemented by the Teckentrup group that seeks to improve the diversity in management can also be adopted by other small and medium-sized enterprises (SMEs). …
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The Demographic Challenges of Germany and Theit Impact on Economy
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Download file to see previous pages The SMEs also represented 10% of all the export companies, which are the backbone of the German economy and helped establish Germany as the fourth largest economy in the world. The SMEs represent what German firms are famous for, innovation rather than price and competitiveness based on quality. It is these companies that have seen German products being recognized for their high standards and quality.
The population decline in Germany is not a new phenomenon at all; in fact, it has been long in coming. In Germany, large families began to go out of fashion during the West Germany era in the 1970s. During this time, the country prospered as the economy improved and the fertility rate began to drop to about 1.4 children per woman. The fertility rate has since then stagnated and pretty much stayed there. All this time it has been far below the rate of 2.1 children that is needed to maintain a stable population. Germany had a sizeable proportion of its population (50 million) between the 20 and 65years age bracket as of 2010. Official statistics predict that this is going to significantly change with time as the population of this age bracket is expected to decline to below 36million by the year 2060 (Berghahn, 2005). More than 50% of the entire German population at this time is expected to be older than 51. The case seems will be the same in a few other European countries. There is little doubt of a population crisis for Europe in the years to come. Several recent studies have shown that the historically high unemployment rates, more than 50 percent, among youths in places such as Spain, Greece, and Italy are discouraging the young people from having many children. According to a European Union report, the total number of live births among the European nations fell by 3.5 percent from 5.6million to 5.4 million, between the year 2008 and 2011. The figure, when compared to about 7.5 million children in 1960 born in the same region, helps understand the problem.  ...Download file to see next pagesRead More
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