Backhouse, Taylor

Project title: The effects of the German Divide from 1945-1989 on Germany’s Present Day Industry, Economics, and Investment

Department: Peter B. Gustavson School of Business

Faculty supervisor: Komal Kalra

"In 1989, with the fall of the Berlin Wall, a united Germany emerged. However, as you travel between the eastern and western parts of the country it is very evident that the country is still divided in terms of wealth, investment, and industrial production. It is noticeable in the pricing of goods between the east and west; the infrastructure in these areas; the social programs; and even a difference in average salaries between the east and the west. It is also abundantly clear that this division isn’t getting any better as time progresses—in fact, in some respects, it is like the Berlin Wall never fell. With this in mind, I will be conducting my research to find out why this phenomenon is occurring and its implications on doing business in Germany with regards to regional economics. To do so, I will look at three companies, from three major German industries, all of which are members of the Deutscher Aktienindex (DAX; the German Stock Index)."