That is a key aspect of what has been called, for the sake of simplicity, “Germany’s business model” – foreign trade is another factor I will be touching upon shortly. But how are the three challenges I mentioned just now impacting on this “business model”? That’s what I will delve into next, starting with the supply chains.
3 Recalibration of global value chains Global value chains experienced considerable change in the 1990s and early 2000s. The reason for this? Rapid globalisation during this period (see Chart 3). The main forces driving this trend were the dismantling of trade barriers, the fall of the Iron Curtain, and China’s integration into the global trading system.