From physically divided to economically divided: The modern effects of the German Divide from 1945–1989 on current German economics and its implications for doing business in Germany
Date
2018
Authors
Backhouse, Taylor
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Publisher
Bachelor of Commerce Best Business Research Papers
Abstract
Since the war, Germany has struggled to get back on its feet politically, socially, and above all economically. During the division of the nation from 1949-1989, the economic differences between the Federal Republic of Germany (West Germany) and the German Democratic Republic (East Germany) were undeniable. Considering the fact that West Germany operated a free market economy in a western political system, and the East operated a centrally planned economy in a communist political system, there were many economic hurdles come the reunification of Germany in 1989. However, immediately after reunification there was an obvious gap in the economic state of the eastern and western sections of the nation. Thirty years later, despite Germany’s economic reputation as a world leader in exports and manufacturing, the gap between the East and West can still be seen in many aspects of German economics. The purpose of this case study is to examine the initial cause of the economic divide as well as to examine the reasons and the severity of the gap as of 2017 and its implications for doing business in Germany.
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Citation
Backhouse, T. (2018). From physically divided to economically divided: The modern effects of the German Divide from 1945–1989 on current German economics and its implications for doing business in Germany. Bachelor of Commerce Best Business Research Papers, 11, 7–21.