Global Performance of German and France - Essay Example

GLOBAL PERFORMANCE OF THE FRANCE AND GERMANY The focal point of this paper is to analyze and evaluate the global performance of the France and Germany in the European Union in the past three years with the help of updated statistics. But before we proceed we must understand the true aspects of global market and globalization in relation to France and Germany. The term globalization has brought some positive impacts and some negative impacts on the world market economy. As with all types of changes, this massive economic revolution has impacted the marginalized people as well along with business. It is hard to say whether the impact has been positive or negative because there is lot of gap and difference between the status in the middle and upper and lower middle and low classes of business. Globalization has widened this gap to the extent that they look un-breach able. Whichever way you look at this transformation it is obvious that globalization is an economical aspect. And it is good that it is; the onset of globalization has kick-started a movement of liberalization of independent thought process, which due to the heightened global interconnectivity may prove more successful than it ever was in any of the past socio-economic and cultural revolutions and in this respect these two countries, France and Germany, cannot be overlooked. (Dos, 441-442) Globalization is a big word today and one that has changed the way we look at and understand things around us. What is actually globalization What do we understand by this word Globalization is simply the predisposition of the economy through business, knowledge through technology and thought through philosophy to spread globally. Globalization can also mean the process by which this happens. This term is almost synonymous with intertwining of markets and economies without any consideration for physical border or legal restraints and it general it is well applicable for France and Germany. (Fletcher, 188) Ideally it is believed that globalization is the means to create a global positive impact upon the poor and the poverty in general by opening the doors to availability of a host of opportunities and resources which would have, otherwise not been available nationally. The downside is that globalization seems to profit the rich more and the poor less, thus widening the gap further. It is true that globalization actually means the broadening of global linkages, while also impacting upon the social and cultural dimensions of the global society, hence propagating a one-world-citizenship which has one economy, one culture and one social order. Ecumenically globalization's definition would be complete with the above classifications. But there are many inroads in the understanding of the term. This is the process with which the poor countries can think of modernization and global competition, enhanced living standards, and work opportunities; on the other hand this very same process is the one which can destroy economies by sudden influx of foreign capital, can destroy marginalized workers livelihood and destabilize national banks. Hence, globalization literally is like a coin - with two very separate sides and much of it is realized in France and Germany. However it should be mentioned that France is much well placed in terms of economy in this context when compared to Germany. At the same note it can be mentioned that the economic equilibrium in the international level is changing very quickly with the affects of financial flows and increasing trade. It is globalization that forces us to re evaluate the position of Europe along with major countries like France and Germany in the world market. This new wave of economy has given enough impetuous that positions held about three years ago are certainly to be changed. As it is these two countries are not doing in a very favourable mode in the international economic sector and domestically these two countries are witnessing rising inequalities with industrial instability as France is unable to control the regulatory mechanisms of wealth. As Germany is one of the biggest markets for France it is obvious the entire matter is detrimental for both the countries. (Dev, 78-81) Globalization or International business for France and Germany has never been a simple matter. In point of fact, with the diversified number of countries which engage in global business, the challenge is anything but easily surpassed. A businessperson's largest asset would have to be the support gained by his or her employees or employers depending upon the infrastructure in the company. There are many lessons to be learned in gaining an international view of economics. Education about the world's economic structure, cultural differences and the interrelation between the two is as important as understanding the methods your business uses from start to finish. The primary factor for France and Germany to conceptualize would be the fact that every country pursues business differently. Laws affect the ways in which business is conducted from region to region and country to country. Negotiations are never conducted exactly as they would be where you have pursued such actions in any city, in any state in whichever country from which you originate. Knowledge and understanding of how others conduct business is an incredible advantage toward the understanding of global management accountancy situations. For example, where the deal is always the single most important consideration to Americans, the details and the way those details are ironed out would be more important for Europeans and Asians. This is where cultures clash in the board room. Something many who are experienced in global management accountancy would state unequivocally. (Dollard, 89-92) There are many methods to consider global managerial approach of France and Germany. You may look at them in a business perspective, where the bottom line is the most important. You may also perceive them in a cultural diversity light. Still yet, you may perceive the global management formulation of France and Germany as a unifying method toward globalization. Globalization of corporate entities in France and Germany is a situation that is hotly debated. It would also be one that is fiercely territorial in some cases. In the eyes of many from the northern states in the US this is the preferred method for management accountancy and enforcing a series of set standards toward labour and economics in the world. The south would have a different viewpoint, in that centralization tends to favour one body in place of more than that. Understanding global economics from a managerial perspective requires an understanding primarily of accountancy and economics. Secondly, we must understand how our accountancy and economics associates in a global landscape and finally, how cultures and accountancy coincide or clash depending upon the situation. (Deb, 323) In the past three years we have seen that in accordance to the IMF the total growth of world in the economic sector was about 4%. In 2006 it was found that this growth was 4.4% where as in 2005 the same growth was 4.3%. On the other hand in 2004 this growth rate was 3.95%. However, it should be noted that the growth rate of 2006 was the highest since 1973. It was estimated that the amount of wealth created during this time was around 1450 billion dollars. In this respect it would be relevant to add that this increase was due to the exhaled margin of trade in the international arena relating to services and goods. This growth in 2004 was 7.5%. The result was a total of 25% association of France in the sector of economic activity where the jobs exported by France were around 25% during this time. In this same time frame China's National Bureau of Statistics in December 2005 recalculated its 2004 nominal GDP raised by 16.8% or Rmb2, 336.3 billion (US$281.9 billion), making China the 6th largest economy in the world, leave behind Italy, with a GDP of almost $2 trillion USD. At the start of 2006, the People's Republic of China officially proclaimed itself as the 4th largest economy, determined by USD-exchange rate leaving behind France and the United Kingdom. At the beginning of 2006 China arises as the second largest economy in the world determined by domestic PPP (purchasing power) measure, at about $10 trillion USD, although such approximation must be taken with a great deal of warn as PPP estimation is very vague, more than ever in a huge country like China, Chinese acquiring capacity varies radically between Shanghai and Sichuan, and PPP is immaterial for imported products and overseas acquisitions. By the end of 2008, China foresee (determined by exchange rate) to go beyond Germany as the third largest economy, and to overtake Japan by the year 2015. Though it is true that there is a growth in France's economy it is of no match to other developing countries like China. (Kar, 46-7) Germany too is trailing behind as a result and in the same context. It may appear that Germany is getting pressurized by the presence of the developing countries. In accordance to the IMF the total growth of world in the economic sector in context of Germany was about 3.3%. In 2006 it was found that this growth was 3.2% where as in 2005 the same growth was 3.7%. On the other hand in 2004 this growth rate was 3.1%. However, it should be noted that the growth rate of 2006 was the highest since 1980. It was estimated that the amount of wealth created during this time was around 980 billion dollars. In this respect it would be relevant to add that this increase was due to the economic instability of France as this country with its goods and services predominantly acts a determinant of German economy. The result of France's comparatively lower growth in relation to the developing economies Germany ended the year with a lower margin. There was the total of 13.5% association of Germany in the sector of economic activity where the jobs exported by Germany were basically negligible. However, it should be remembered this context that the down fall of France and Germany in international market was due to two important factors in the last three years. The first one is emergence of the developing nations into the global market while the other is a domestic problem and it is related to labour. (Border, 227-228) Labour quantity and labour quality are two problems that can affect the management in terms of being two forces that can be enumerated as quandary that is beyond the control of the management of a company in France and Germany. It should be understood that the Labour quantity and labour quality is vulnerable as there remains only a finite amount of employees available at any given point of time and the skill level of the employee needs to coincide with the needs of the employers. (Berkowitz, 189) Similarly, for France and Germany, in the context of international business, it is important to understand the basic reasons behind the action taken by the labour force while leaving their homeland for jobs abroad. Apart from the usual reasons of becoming an emigrant like political repression, ethnic battles, racial discrimination, revolution and wars there are other reasons too. This reason is the opportunity of a better employment and the prospect of personal development by the dint of better pay. Apart form these there are the interventions of guest workers who move to a specific country to perform definite jobs assigned to them. These include jobs like construction work, factory jobs or other kind of services. These situation remains in a continuous process until the host country becomes slow with its economy. This is the time the native of the host country starts getting restless and want to take over the jobs occupied by the guest workers. This ignites racial problems and adds more difficulty to the management level of the companies. Employment of women workers in France and Germany as a section of the minority group also influences the international business environment in terms of labour with the aspect of social roles involved in it. It was found that since the middle of the 1970's women is getting more involved in countries that are leading in industries. But soon, during the 1990s, this trend was slowed down due to different obstacles with involved discrimination in workplace with lifestyle changes. This trend is still in its continual mode where women involvement is becoming lesser and there is simply no participation by women at all in some countries. (King, 136) Another aspect of international business for France and Germany and if not the most important aspect is the existence of labour union. However it differs from time to time and country to country. For example, it has been found that the labour union movement has been more instrumental in being politically motivated in Europe rather than United States whereas in United States it has been found to be more pragmatic in nature. It was seen during the 1990' that the political involvement of the labours in United States has risen and the labours are taking active participation with the enhanced activities of the labour union movements. This has been seen all over the United States and the activities are becoming more in recent times. In the same context it should be remembered that the union is not getting such strongholds in other developed countries. Thus it is obvious all these factors influence the international business from a bigger perspective working together and all these aspects must be handled with more care to attain success and in the recent three years France and Germany were unable to deal with the problems effectively. (Lamb, 243-245) In conclusion it should be stated that during the last three years it had been a dull period in the international economic sector despite the development of economy in general. This is because in the overall scenario of the world economy these two countries, France and Germany, were unable to yield a greater amount of harvest as expected. As a result it can well be stated that in the last three years these two countries, France and Germany, were a basic failure in terms of economy. Furthermore it can also be stated that the global economy in these two countries had created more problems than advantages and it is mentioned earlier one of the most important disadvantages of a global economy is greater measures of inequality of wealth and France and Germany are facing this problem. This is magnified as being a first world nation people are more aware of this problem where as, in general sense, the people of developing nations are less concerned about this thus those countries had to face less problem relating to this crisis of global economy. If this problem continues in the long run then it would create a real problem for France and Germany. In such conditions it would be relevant to mention that France and Germany are to face only the negatives of global economy and miss out the advantages. References: Berkowitz, L; Economy, Technology and Man. (New Haven and London: Yale University Press. 2006) pp 189 Border, S; Red Dragon: Fire of the Mind. (Delhi: National Book Trust; 2006) pp 227-228 Deb, J; Introduction to Dark Side: Global Economy. (Kolkata: ABP Ltd. 2006) pp 323 Dev, S; Evaluation of Techniques (Kolkata: ABP Ltd. 2005) pp 78-81 Dos, M; Future of Economic Thought Process. (Mumbai: Alliance Publications; 2005) pp 441-442 Dollard, John; Modern Frustration: A look into Tomorrow. (New Haven and London: Yale University Press. 2006) pp 89-92 Fletcher, R; Economic Beliefs and Knowledge: Believing and Knowing. (Mangalore: Howard & Price. 2006) pp 188 Kar, P; History of Globalization and related applications of Globalization (Kolkata: Dasgupta & Chatterjee 2006) pp 46-7 King, H; Globalization Today (Chennai: HBT & Brooks Ltd. 2005) pp 136 Lamb, Davis; Cult to Culture: The Development of Civilization on the Strategic Strata. (Delhi: National Book Trust. 2004) pp 243-245 Read More