Tuesday, May 11, 2010

Berlin backs EU aid fund


Today, Chancellor Angela Merkel's cabinet approved Germany's share of the trillion-dollar rescue package for the crisis-stricken European countries. This decision was allegedly reached after President Obama stepped in with words of encouragement for Merkel.

Berlin alone is expected to chip in at least €123 billion ($157 billion) in efforts to alleviate pressure of economically unstable countries in the EU. Germany, as a whole, is expected to throw in much more to the efforts, up to €150 billion.

The New York Times reported that it took a phone call from President Obama to Chancellor Merkel, during which he stressed the importance of this funding to secure the stability of the European Union, to ensure the contribution from Berlin. She faced criticism locally and abroad for her decision, the populist daily Bild screamed on its front page: "Yet again, we are
the idiots of Europe."

Sunday, May 9, 2010

Germany and Globalization

As debate thrives about whether globalization has been good or bad for European consumers, workers, companies, and governments and what the prospects for the future are, Germany has proved to be one of globalization's biggest winners. German prosperity is directly tied to an open global economy. Globalization has helped Germany remain one of the worlds largest and most competitive economies, in 2008 the German degree of trade openness amounted to roughly 75 percent, making it the world's largest exporter of goods and third largest exporter of services.
While Germany has proved to benefit from globalization, it has also faced it's fair share of challenges as well.


Germany and Globalization Five Key Trends
1. Germany is the only large European country that continues to maintain a strong and persistent presence in high- and medium-high-technology manufacturing. German industry accounts for 87% of Germany’s trade. German economic strength resides less in pure technical wizardry than in the capacity to integrate cutting-edge innovation into “classical” manufacturing products and processes, often rendering medium-tech industries into high-tech leaders. This is particularly evident in machine tool and auto production, chemicals and electronics engineering. Intelligent production processes are thus a key basis for German prosperity. Germany’s strength is not only due to household name large companies but to the dynamism of its Mittelstand of world-leading smaller firms. The test is whether Germany can keep ahead of the game through continuous process and production innovation in industries coming under greater direct pressure from rapidly developing countries as well as high-tech developed countries.


2. Germany’s trade has shifted to developing countries, but German investment remains focused
overwhelmingly on developed countries. Nine of the ten fastest growing export markets for Germany since 1990 have been developing nations. German exports to the latter increased by nearly 10% annually since 1990, versus a comparable rate of 5.8% to non-EU-15 developed nations. More than two-thirds of Germany’s outwards investment stock, however, is in developed nations.


3. German companies are often front-runners in both Europeanization and globalization. They are taking advantage of the larger European Single Market to integrate new EU member states into their manufacturing production processes. 87% of German offshored jobs stay in Europe. Germany is offshoring manufacturing jobs within Europe and services jobs to Asia. The investment of German companies in the initial ten central and east European accession countries to the EU rose from €350 million in 1990 to €41.4 billion in 2004, and the number of people in these countries employed by German companies during this period jumped 25 times – from 31,000 in 1990 to 757,000 in 2004. Europeanization has its limits, however – in reaction to the 2008 global financial crisis German leaders refused to participate in any Europe-wide plan that would potentially draw on German taxpayer funds to rescue banks in neighboring countries. Despite the euro, the EU’s financial sector is still more fragmented than united. This is inefficient and makes it hard for Europe to craft a coordinated and
effective response in times of crisis.


4. Germany is shrinking, aging, and losing ground in the battle for global talent. Every year 300,000 fewer children are being born than needed to keep Germany’s population stable. An older German work force is exacerbating skill shortages and exposing mismatches between available jobs and relevant skills. Globalization is not responsible for these demographic pressures, but it exposes the demographic challenges starkly. Immigration is essential to Germany’s future prosperity, and Germany remains a top destination for migrants. But Germany is a magnet for the unskilled and recent efforts to facilitate the inflow of skilled migrants have yet to demonstrate success. Domestic reforms and new approaches are urgently needed.


5. Despite key strengths, German innovation is uneven and its education system is failing to meet the challenge. Germany ranks high in key cutting-edge economic sectors, boasts vibrant regional clusters, and invests considerably in innovation at home and abroad. Yet Germany ranks 8th among 16 advanced innovation economies and risks being squeezed between the high technology challenge posed by the U.S. and Japan and the catch-up challenge posed by rapidly developing countries.


Hamilton, D, & Quinlan, J. (2008). Globalization & Europe: prospering in the new whirled order. Washington, DC: Center for Transatlantic Relations.

Saturday, May 8, 2010

WWII victory 65 years ago was a "liberation for all"

65 years ago today, Nazi Germany surrendered to Allied forces after six years of war that was started by Adolf Hitler. According to German parliament president Norbert Lammert the Allied victory was a "liberation for all," although it may Germans time to acknowledge this.

The Russian Embassy commemorated the day with youth groups and veterans in Berlin visiting memorials to the Red Army fighters, located in the center of the German capital. The opening of a somber new museum in Berlin , Topography of Terror, documented the headquarters of the Nazi regime's most used resources; the SS, Gestapo secret police, and the Reich Main Security Office (RSHA).

Tuesday, April 13, 2010

Nazi Germany Propaganda

Propaganda is information, ideas, or rumors deliberately spread widely to help or harm a person, group, movement, institution, nation, etc. It's first use dates back to 1622, shortly after the start of the Thirty Years' War, Pope Gregory XV established the Congregatio de Propaganda. This was a group of Cardinals who's duty it was to oversee the propagation of Christianity by missionaries whom were sent to non-Christian countries.

One of the most recognizable uses of propaganda was by the Nazi Party in Germany, during the period in which Aldolf Hitler was in power (1933-1945). After the Nazi Party seized power in 1933, Hitler established a Reich Ministry of Public Enlightenment and Propaganda. The main goal of the Ministry was to ensure that the Nazi message was successfully communicated through all media outlets; newspapers, magazines, comics, films, posters, radio, and books. Nazi propaganda provoided the party with key instruments to recruit and sustain power in Germany.
Nazi propaganda was used to create two types of enemies, internal (the Jewish people) and external (countries that inflicted the Treaty of Versailles upon Germany). The Nazi Regime was successful in using propaganda to implement and explain the anti-Semitism movement in Germany during this time.




Saturday, April 3, 2010

German Car Company Makes Top 10 Global Branding Companies

A recent BusinessWeek.com poll of the "Top 100 Global Brands Scoreboard" ranked Mercedes-Bens, a German auto company, in spot No. 10. Not far behind Merceded-Benz is its competitor BMW, ranking in at 13th.

Besides its native country, Germany, Mercedes-Benz automobiles are manufactured in over 20 countries worldwide. This has attributed to the worldwide branding recognition that Merceded-Benz has created for itself.

Beside Toyota, Japanese based auto maker ranked at No. 6, Mercedes-Benz tops the charts as far as auto companies go.

Mercedes-Benz has, thus far, succeeded in the four global branding strategies: brand domain, brand reputation, brand affinity and brand recognition.

Tuesday, March 16, 2010

18 out of 175 in the Latest Worldwide Index

Press Freedom's Reporters Without Borders compiles a yearly ranking of countries based on the organizations assessment of the countries freedom of the press. 175 countries are included in the annual list.


In 2009, Germany came in at 18th on the list, moving up from previous years.
According to the Press Freedom's 2010 Barometer:
  • Zero journalists have been killed
  • Zero media-assistants have been killed
  • Zero German journalists are imprisoned
  • Zero media assistants are imprisoned
  • Zero neitizens are imprisoned
The entire list of 175 countries can be seen at http://www.rsf.org/en-classement1001-2009.html

Monday, March 8, 2010

Bertelsmann AG

Founded in 1835 and based in Gutersloh, Germany, Bertelsmann AG is now one of the largest transnational media corporations in the world. Bertelsmann AG produces, serves and targets different outlets of media. In recent years, Bertelsmann AG has been the world's largest book publisher by sales (2008) and the largest media group in Europe (2006).



While not directly under the Bertelsmann name, 63 countries worldwide are being provided with television, radio, internet, newspapers, magazines and books through some outlet of Bertelsmann AG. This is possible through five corporate divisons: RTL Group, Random House, Gruner + Jahr, Arvato, and Direct Group. Each of these companies occupy leading positions within their respective markets.






  • RTL Group provides over 170 million television viewers in Europe with entertainment on a daily basis.
  • Random House is the book publishing arm of Bertelsmann AG, they have 120 publishing houses spanning 19 countries.
  • Gruner + Jahr is the print media outlet owned by Bertelsmann AG. Publishing 19 magazines in France alone, five newspapers in Germany and is the leader of the advertising market in Poland.
  • Arvato provides print and digital services. This corporate division handels everything from preprinting to finishing. Also, Arvato developes integrated service packages from video, audio, games and technology.
  • Direct Group helps bring media to people through online shops, bookstores, media clubsand direct sales.