Of the social market economy in order to face the crisis during the first half of the twentieth century by abolition on the working of the price system and shifting to the planned economies. Te lack of cooperation between the factors of production is the main cause of the economic problems faced by Europe at the end of the Second World War. Te destruction of Europe after the two world wars was not only due to the consequences of war but due to the shift to the planned economy various parts of Europe in the first phase of twentieth century.
Te development of social market led to the emergence of globalization in the economy. Grmany was largely benefitted from globalization. Te labor and economic policies allowed the country to face the economic crisis that prevailed during the period from 2007-2009. Grmany is considered as the fourth largest economy of the world and the largest economy of Europe in terms of its trade and investment. Te social market economy of Germany includes the development of partnership between the employers the trade unions.
2The two contributing factors contributing towards the German miracle were the labor market reforms that solved the problem of unemployment in the country despite of the financial crisis prevailing in the economy. Gobalization resulted in the increase in competition between the companies and the locations. Te policymakers recognized one opportunity for developing the economic condition of the country at the national level by decreasing the tax burden for the companies. Grmany is considered as the beneficiary of globalization during the 20thcentury but it is unable to full advantage of the various opportunities provided by globalization.
Te main problem is not the companies, bt the location of Germany itself. Terefore in order to promote the economic development of the economy, te government is required to undertake the responsibility in improving the economic condition of the country ort the nation. Te social benefits offered to the public must be strongly emphasized in order to increase the acceptance of globalization in the economy. Te effects of globalization with the development of the concept of the social market economy Germany are increase in productivity, geater funding provided by the government for its research and development activities and improving competitiveness.
Te governments of all countries mainly focus on the growth and prosperity of its economy. Te future...
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