How does Germany export so much goods?

Question

They stand over a trillion with China and USA. Those countries are absolutely enormous compared to Germany in old Europe. What do they even export?

Answer 1

Germany has next to no resources (minerals, oil, gas etc), so it has to survive by adding value to goods that it imports. So it imports all kinds of raw materials, adds value via technology and then exports the finished good or the high-tech skills.



Germany has no import restrictions since the philosophy is that if something can be produced cheaper elsewhere, it should be imported and the population has to be educated to compete in higher skilled areas for work.

That is why education on all levels is free in Germany for citizens.

Answer 2

Germany does no longer have a lot in the best way of normal assets relative to their measurement and populace. They have Lignite, or brown coal, and potash. So they have got centered the majority in their enterprise on production. During international warfare II Germany constructed a incredibly effective and complicated production ability. considering then, they have got endured to stress production as their predominant financial undertaking, and feature turn out to be international renown for satisfactory. Germans are good knowledgeable, and recognition on exports with production being a comparative capabilities in alternate.

Answer 3

(1) Germany is a medium-sized coiuntry. With a population of over 80 million, it is the 15th largest in the world.

https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html





Also, a higher percentage of Germans work in manufacturing than for most other developed countries. About 22% of the German economy is manufacturing, where in the U.S. it is only 12%.

http://www.census.gov/compendia/statab/2010/tables/10s1315.pdf





Compared with the U.S., in the period from 1995 to 2007, unit labor costs (dollar per unit of production) has dropped in both Germany and the U.S. but has dropped more in Germany:

http://www.census.gov/compendia/statab/2010/tables/10s1317.pdf



Germany exports a much higher percentage of what it produces than does the U.S. (The U.S. actually manufacturers more than Germany. (The U.S. is #1 in the world, while Germany is #4) It just doesn't export as much)

http://investing.curiouscatblog.net/2008/09/23/top-manufacturing-countries-in-2007/



So one way to look at is that since it is a smaller country, it can't produce as many of the goods and services it needs as a larger country can. Also, unlike the U.S., it has to import essentially all its oil, most of its natural gas, etc. German imports are 33% of GDP, as compared with 14% for the U.S. and 8% for Japan.

http://www.nationmaster.com/graph/eco_imp_rat_of_gdp-economy-imports-ratio-of-gdp



So, like Japan, and unlike the U.S., it has to have an export oriented economy - it has to sell things so that it can buy the things it needs. And it will do whatever it takes to produce the goods that the rest of the world will buy. After all, every country has comparative advantages.

Answer 4

Lots of machinery, vehicles, chemicals, metals, foodstuffs, consumer electronics, textiles, beer, and pharmaceuticals.

Answer 5

cars, knives, clocks