The impact of globalization on the German economy - Or: the impact of outsourcing on the German economy (PDF)

Seminar paper from the year 2006 in the subject Economics - International Economic Relations, grade: 1,3, University of Applied Sciences Nuremberg, course: Current Issues in International Economics, 22 entries in the bibliography, language: English, abstract: The world is growing together and borders seem to disappear. We buy our English books online in America or Great Britain and ship them over to Germany. Flights are booked directly with British Airways or Air China via internet. Our kiwi fruit is originated in Thailand and also Bananas do not grow in Germany. We still have access to those products all year around and assume to get them fresh every day. All this is meanwhile taken for granted and we do not think about the procedures behind it anymore.
But what happens if more and more companies buy or produce their products and services abroad. Porsche for example produces the Cayenne in Leipzig, but 73% of its value is originally from suppliers and half of those are based abroad. And Volkswagen produces not only the Polo but also the Touareg in Bratislava.1Information Technology services are cheaply provided by India. And more and more companies take advantage of that.
Why is global trade growing and when did it actually start? But more important, what is the impact of globalisation and specifically outsourcing on the German economy?
This paper will explain the effect of international trade and its special forms of outsourcing and offshoring, when everything started and how it gained on importance in today’s market. It will outline opportunities and limitations and illustrate economic implications. Furthermore the current issue of Sinn‘s word creation “Bazaar economy” will be discuss and criticism will be stated, combined with statistical evidences.