There exists a number of Canadian Companies that have set up base in Germany. Some of the top Canadian companies in Germany include CAE Electronics, Bombardier, and Magna. CAE is the global leader in modeling, simulation and training for civil aviation and defense. Bombardier manufactures planes and trains. In fact, it is the world's only manufacturer of both planes and trains. Magna is an automotive supplier which has its headquarters in Aurora, Ontario.
The key industries that Canadian companies have had success include aerospace and defense, agriculture, manufacturing, automobile and information communication technology. The major reason for the firms' success is the reality that Germany is the largest economy in Europe, hence providing a strong market for the commodities. Germany also has very good infrastructure that supports business operations. There also exists a lot of well-trained manpower that provides labor to industries especially specialized industries such as engineering.
Germany has also sold itself as a good investment location to Canadian companies. It has also experienced fiscal and monetary stability over the years. The good bilateral relationship between Canada and Germany as well as relative political stability in recent years in Germany has led to the promotion of its image as a good investment destination.
Global competitiveness is a measure of the relative cost of services as well as goods from a country. Countries that produce the same quality of goods at lower costs are said to be more competitive. One of the factors that affect international competitiveness of German is the rate of inflation. Since the post-war period, Germany has had a lower inflation rate as compared to the major world economies. This makes the goods produced within Germany to be cheaper in the international market as compared to goods from other countries. Germany also has a high pool of highly educated labor force that enables it to have high labor productivity hence producing goods at a lower cost. Germany uses advanced technology in its industrial operations. This ultimately lowers the cost of goods produced.
The infrastructure also affects competitiveness. Since Germany has highly developed infrastructure, this makes it to be more competitive. The ease of doing business will also affect competitiveness. Germany does not feature in the top ten countries with least cost of doing business. This may end to reduce its competitiveness, but overall, it can be concluded that Germany is a very competitive country.
Some of the products made in Germany include automobiles, electrical appliances and aviation equipment such as planes. Germany has a complete advantage in the production of these items due to the availability of highly skilled workforce. It also attracts skilled labor from other countries due to good remuneration packages. It also has a lot of advanced technology that may not be available in other countries.
Germany is highly productive. This is due to a variety of factors. The good infrastructure aids in the business process. There is the presence of highly skilled workforce who are able to produce quality outputs for the market. There are a lot of international firms which add to the number of goods produced within Germany. There is also an enabling environment in the form of sound fiscal and economic policies as well as political stability.
Works Cited
Abelshauser, Werner. German Industry and Global Enterprise: Basf, the History of a Company. Cambridge: Cambridge University Press, 2009. Print.
