• Section: Money Guide - Category: Online Business
• Written by Olivia Hunt

Presently one of the major issues of Germany is the global economy that undergoes great changes. The challenges of globalization raise new questions that must be solved. With the emergence of new economic powers the world economy and the economic power of Germany is changing giving new opportunities and challenges in the working sector.

Since 1970s Germany has shown a stable currency and as a result

untry with a tradition of low inflation, goof industry and high employment level. However, there are structural changes in the labor market, shifts in the production and employment. All these changes are not caused by globalization as it just intensifies already existing problems. Wages in German are high in comparison to other countries that make German companies use every opportunity to hire workers abroad putting pressures on German employment sector.

Nowadays globalization has reached a new level in its development. Its influence poses a threat to the Germany industry as Germany companies place their manufacturing and production lines abroad. Thus, the label 'Made in Germany' becomes an urgent advertisement pattern problem and the number of working is dropping rapidly. Germany, a country famous for its car manufacturers and engineers, does not have essential base within the country. For example, Volkswagen Company is going to reduce the number of working places in the native country or, as alternative, to reduce the salary amount. This question is raised due to the coming job cut at Opel Company owned by General Motors.

While large car companies continue working, smaller companies does not meet the global competition and disappear. In general, there is a tendency in the German industry in companies' reduction due to high competitive conditions. Nearly every week one company announces its closing while the plants of large companies are built abroad in low-salary states. There is the only result of such 'changes'

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