Angela Merkel = 1 st women chancellor in Germany in 2005 social market economy …http://www.germanculture.com.ua/library/facts/bl_economy.htm
The German market is open for investment in practically all industry sectors. German law makes no distinction between Germans and foreign nationals regarding investments or the establishment of companies. The legal framework for FDI in Germany favors the principle of freedom of foreign trade and payment. Every year more and more companies discover Germany as a secure and rewarding investment location. Alone in the last five years, Germany's FDI stocks increased by a total of 47 percent to reach approximately €503 billion in 2009. 3. A further nine percent stemming from the remaining European non-EU countries. 4. ESPECIALLY ASIAN COUNTRIES INCREASED THEIR FDI STOCKS IN GERMANY IN RECENT YEARS.
Followed by Eastern Europe (38 percent), and the UK (32 percent) respectively 2. The automotive, industrial machinery & equipment, consumer goods, and chemical industries are likewise attractive foreign investment sectors in Germany. 3.
GERMANY By: Jennifer Strickland, Tara Tunney, Jon Whitcomb
Political Economy <ul><li>Euro </li></ul><ul><li>Political system: Federal republic </li></ul><ul><li>Head of government is the Chancellor: Angela Merkel </li></ul><ul><li>Unemployment rate as of 2010 estimated at 7.5% </li></ul><ul><li>social market economy </li></ul>
Regional Economy <ul><li>Population: 82 million </li></ul><ul><li>Capital city: Berlin </li></ul><ul><li>Popular tourist destination </li></ul><ul><li>Natural Resourses: Natural resources: coal, lignite, natural gas, iron ore, copper, nickel, uranium, potash, salt, construction materials, timber, arable land </li></ul>
Cont. <ul><li>Europe's largest--is a leading exporter of machinery, vehicles, chemicals, and household equipment </li></ul>
Globalization <ul><li>General Trend: </li></ul><ul><li>-imports/exports </li></ul><ul><li>-Unemployment rate as of 2010 estimated at 7.5% </li></ul><ul><li>-what they specialize in </li></ul>
FDI cont. <ul><li>Germany has a welcoming attitude towards foreign direct investment. </li></ul><ul><li>More than 45,000 foreign companies are already operating in Germany, employing around three million people. </li></ul><ul><li>Germany ranks sixth in the world as a recipient of foreign direct investment </li></ul><ul><li>According to German Central Bank statistics for 2008, seventy-five percent (or €359 billion) of all FDI stocks in Germany originate from within the 27 EU countries. </li></ul><ul><li>Investments from outside the EU continue to grow. </li></ul><ul><ul><li>NORTH AMERICA ACCOUNTS FOR 11% OF FDI STOCK, WHILE ASIA HOLDS A 5% SHARE. BOTH CHINA AND INDIA RECORDED GROWTH RATES OF MORE THAN 20% IN 2008. </li></ul></ul>
FDI <ul><li>FDI flows to Germany increased by 46 percent in 2009 while FDI stocks rose slightly, positioning the country as a strong economic foundation for Europe </li></ul><ul><li>FDI inflows increased from $24 billion to $36 billion from 2008 to 2009. </li></ul><ul><ul><li>It was the only country in the top seven that posted inflow growth. </li></ul></ul>
FDI <ul><li>The most important countries as sources for new investment projects are the USA (29% of all investment projects), UK (9%), and France (6%) respectively. </li></ul><ul><ul><li>A recent study showed 80 percent of American companies named Germany as their first choice </li></ul></ul><ul><ul><li>THE ERNST & YOUNG study on the attractiveness of the European economic area (2010) also shows that Germany is the #1 business location in Europe and even the #5 worldwide. </li></ul></ul><ul><li>Almost every fifth investment project is manufacturing-site located – making this the second most important business activity in Germany </li></ul><ul><li>The ICT & software industry, and business & financial services are leading sectors in attracting new projects. </li></ul>