The Export Competition between Germany and China

Fuad Babayev

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Master's Thesis from the year 2014 in the subject Economics - International Economic Relations, grade: 2,3, University of Flensbu...

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Master's Thesis from the year 2014 in the subject Economics - International Economic Relations, grade: 2,3, University of Flensburg, language: English, abstract: This master thesis researches the export competition between Germany and China. The Russian market has been selected as an example in order to explain ongoing export competition in facts and figures. It has been noted that competition is not only about battles of winners and losers, but it is also about impact of competition on growth and innovation of the economies. Following, the thesis finds out how competition impacts the growth and innovation of theireconomy and what further actions could be taken in this regard. The ideas regarding the impact of competition on growth and modernization are controversial in economic literature and therefore different concepts are analysed. Moreover, the competitiveness of export masters has been researched which is an important part of international trade. The competitiveness of China and Germany is considered according to several criteria, which will be mentioned later in the thesis. Germany and China play a significant role in the world trade and they have bigger shares in imports of different states. These countries have various export strategies in the world trade and in spite of this fact both of them could be considered successful in terms of international trade. Russia is in the list of 20 biggest importers of the world where the share of imports from China and Germany comprise substantial part. It is notable to stress the fact that since 2010 China has won leadership in Russian market over Germany who has been a number one exporter for a long time. The sales of China to Russia have ever since further increased and exceeded the volume of German exports. This ongoing competition process and its analysis through competition theory takes a core place in the thesis.