An effective exporter

Germany puts a lot of effort into education, both academic and technical and has a very well qualified workforce. (It also supports labor in bad times with subsidies called Kurzarbeit to prevent layoffs.) Correspondingly, very good design and engineering. This leads to export competitiveness.

Education is at the root of excellence. High wage is incidental. A nation can’t excel with cheap labor and cheap products.

Germany is truly recognized as Europe's industrial powerhouse and the world's second largest exporter. The significance of the German marketplace goes well beyond its borders. German market - the largest in the EU - continues to be attractive in numerous sectors and remains an important element of any comprehensive export strategy to Europe. This country provides from its high levels of productivity, a highly skilled labor force, quality engineering, good infrastructure and a location in the center of Europe. The most successful market entrants are those that offer innovative products featuring high quality and modern styling. Germany offers competitive tax regulations, investment incentives and a secure, highly developed political and economic framework. This is supported by excellent infrastructure, good educational system, a highly qualified workforce and a legal system that protects property and individual rights. Germany is one of Europe’s leading automotive manufacturers and exported .

There are certainly a lot of reasons: Infrastructure Education Mentality. But first and foremost I would rank German company culture: There is no wide gap between white collar and blue collar workers. Hierarchies are certainly existing but they are flat and rather informal. Everyone sees it as his responsibility to do his part in achieving company success. “Simple” workers do not just do “what they are told”, they take responsibility and this is encouraged and expected by management. This leads to high quality of output and finally to high prices on the market. Unions are not simply in the business of monopolizing the workforce and extracting rents from companies — they are mostly consensus-oriented and highly active in the political process. This keeps German companies lean and flexible.