International trade Assignment Example | Topics and Well Written Essays - 750 words

International trade - Assignment Example The relatively smaller enterprises are concentrated in Baden-Wurttemberg as well as in Bavaria. The production of mechanical machineries has achieved a pivotal importance in the economy of Germany. In the second half 1990s the sector of mechanical machineries experienced slow growth. However accelerated globalization has contributed much to the success of mechanical machineries production. The employment record is best for Germany among the EU member states. The economic performance also improved significantly. The wage modernization process provided competitive advantage to the industries. The advantage of wage modernization and still productivity of labor coupled to improve the economic performance. The mechanical machineries sector is a well diversified sector. The subsector of machine tools also gained importance. Over the past decade specialization is on the process. The subsectors are closely linked with the automobile industry and gained the attention of the European Union. Th e â€Å"engines and turbine† manufacturing is one such industry that has achieved much importance. The share of contribution of this sector is volatile and it is difficult to get any clear trend from the analysis of the sector. The country offers excellent research conditions for the development of technical machineries. But one challenge that the German companies have to deal with is that of high wages as well as some structural change (Vieweg, 2012). International Trade between Germany and Canada The exchange of capital goods as well as services across the international borders is regarded as International Trade. A significant portion of Gross Domestic Product is contributed by trade. In recent centuries the significance of international trade has gained much importance in economic, social as well as political terms (UN/DESA World Economic Vulnerability Monitor, 2012). The determinants or the evolution of the patterns of trade is not incorporated in the formal models of mac roeconomic dynamics. The models generally take into account the patterns of international trade and the structure of the markets along with the factors of production. Germany is a significant partner in trade for Canada. The bilateral merchandise trade of Canada with Germany accounted to more than 14 billion dollars in 2009. In the same year Germany was the second largest destination for export for Canada among the European Union. The decade of 1998 to 2008 the amount of imports from Germany doubled. The exports of Canada to Germany comprised mostly of manufactured goods. The manufactured goods amounted to 60% of the total exports for the year 2009. The exports of Aircraft witnessed the upward rising curve since 2004 at an average of 55%. The exports of cars and car accessories combined to make up 23% of Canadian imports from Germany in 2009. The trade of resource based goods between the countries is more or less evenly balanced. Germany offers services to Canada. In the year 2007, commercial services formed the major part of exports of services. The figure below shows the data on trade of merchandises. (Holden, 2010). The following figure shows data on major exports to Germany from Canada. (Holden, 2010). The following figure shows trade data category-wise. (Holden, 2010). Socio economic indicators of Germany The socio economic development of a country is measured using the rates of GDP, levels of employment as well as with rates of literacy. The invention f new technologies and