Political Turbulence: A Key Factor to Consider Before Entering Germany

GAP: Germany
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GAP: Germany
Political turbulence is necessary for determining the fight or flight reaction of government investments to determine how the current environment affects economic growth (Ali, 2019). For instance, increased political turbulence promotes an unstable economic environment for investors since the risk of bankruptcy is higher than profit. Although political turbulence threatens investments, strategic management and systems can potentially turn political turbulence, especially at the international level, into an advantageous environment to gain more benefits than losses, but which country can to turn international crisis into an advantage and gain economic strength?
Germany has the strongest economy in Europe (Degner & Leuffen, 2019). The way Germans handle domestic crisis and face international dilemmas are related to the broad traditions of German national identity. In the study of Gaskarth and Oppermann (2019), they argued that German policymaking always defines their responsibilities in both domestic and international arenas to constructs moral geography of bearing their duties and obligations. Germans understand that each of them bears equal responsibility in addressing national crises. Because Germany links its policies with national identity, Germany is strict in mobilizing its citizens to pursue national goals. At the same time, their people are willing to uphold their duties and contribute to the public good (Gaskarth & Oppermann, 2019).
As a country with a strong and stable economy, the allies of Germany are calling for additional responsibility in addressing regional and global security (Gaskarth & Oppermann, 2019). Understanding the political risks management of Germany is necessary to prevent political turbulences. This paper aims to verify the political risk management of Germany that affects international allies and enemies, as well as their local and regional partners.
Access to Allies and Enemies
After the inception of the Eurozone, member countries increased trade, financial activities, and converged policy decisions that benefited EU countries. However, the problems of having a single currency backfired when the government spending and debt made economic imbalances, which almost led to the bankruptcy of some EU countries, including Greece, Portugal, Ireland, Cyprus, and Spain (Juneja, 2017). From the creation of the Eurozone, Germany has benefited more from the financial markets and institutions than other Eurozone members (Juneja, 2017). The Study of Juneja (2017) argued that Germany acquired a large sum of investments because of the integration of international markets and exports. Because of the formation of the Eurozone and a single currency, member countries can ignore the different risks as other same currency countries can potentially bail their country out. When Greece, Portugal, Ireland, Cyprus, and Spain threaten the Eurozone stability, Germany needs to find ways to ensure the sustainability of the Euro, since Germany greatly benefit from it. Fo...