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A comparative study of the export performance of France and Germany

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documents in English
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Type
case study
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5 pages
Level
General public
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  1. Introduction
  2. Market analysis
    1. Key figures
    2. Major facts
    3. Major trends
    4. Main players
    5. Distribution
    6. Competition
  3. Current status of Tassimo
    1. An Analysis of the characteristics of Tassimo, compared to its competitors
    2. Match between consumer expectations and the characteristics of Tassimo
    3. Matrix Wear
    4. SWOT Analysis
  4. Conclusion

France and Germany are the two founding members of the European Union and the Euro Zone. Today, they face similar economic conditions, marked by a low growth of around 2%, a high unemployment rate of about 9%, a large public debt of around 66 billion euros, a strong euro, and an increase in the energy bills due to soaring oil prices. However, between 2001 and 2006, the difference between the exports of France and Germany widened.

The trade balance of Germany was positive by 162 billion euros, while that of France showed a deficit of 28.4 billion euros in 2006. Through this comparative study, we will try to explain this growing gap. To do this, we will discuss the historical, structural, economic, industrial, and export strategies of each country.

The second industrial revolution played a decisive role, because during this period Germany invested massively to construct a strong, efficient and a modern industry. This enabled it to increase its competitiveness and reduce costs. Germany enjoyed strong rapid growth in the 1870s.

From 1945 (post war), France and Germany displayed a willingness to cooperate and engage in the construction of the European Union through:
- The Marshall Plan in 1945 for industrial standardization and dissemination of a homogeneous model of commercial and industrial development.
- The creation of the European Coal and Steel Community (ECSC) in 1951, in the desire to ensure world peace.
- The Treaty of Rome in 1957 which established the European Economic Community (EEC).
- The first enlargement in 1973
- The fall of the Berlin Wall on November 9, 1989, which marked a great political upheaval.
- The signing of the Maastricht Treaty in 1992 with the free circulation of goods, services, people and capital.

Tags: European Union, France and Germany, soaring oil prices, competitiveness, Treaty of Rome, political upheaval

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