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Germany Pestle Introduction The republic of Germany contains sixteen states that cover a three hundred and fifty-seven thousand and twenty-one square kilometers. The country has a population of eighty-one million eight hundred people. It is among the highest populated countries in Europe. It is also among the leading countries in terms of technology. Germany is the fourth largest in economic sector in the world. It is the second biggest exporter of good to other countries and is the third largest importer of goods from other counties therefore it is doing well all round in terms of economic growth in the world. Political factors Germany is republic that has it is democracy that whose political systems functions using a system called Grundgesetz. This system was published in the year nineteen ninety-four in the constitutional documentary. The country contains two parties that have existed since they gained democracy, they include, social democratic party and the Christian democratic union. They have helped in making the government into place and moving agendas that have enabled to maintain the stability of the country. A global corruption indexes Through the transparency test that was done Germany scored eighty points against hundred points that were reported by Transparency International on corruption perceptions index. Since nineteen ninety-five until two thousand and eight corruption index in Germany had averaged to seventy-nine point three five points whereas in nineteen ninety-six it was recorded as low as seventy-three points (Farooq, 2019). A human right index Human rights in Germany have high rights of protection since they are contained in the constitution and human right document. Economic factors As stated earlier Germany is among the leading countries that have a good economic structure whereby they enjoy position four when they are ranked in terms of economy. When the gross domestic product was focused in the year 2019 was set up to four points two trillion dollars that shows that the country is well equipped in economic growth. Nevertheless, there was a decline in the gross domestic product in the year 2018, this lead to slow industrial development in the country. Germany has a low unemployment rate which posts of three-point two percent of the huge population of the country. Germany has an economy which is mixed up regarding being the top exporter in the world in the budget surplus. Despite, the country has suffered on the refugee crisis this has led to the decline of growth in the industries but since it has a good foundation of economy growth cannot be stopped. Germany has a small quantity of raw materials in their industrial section mostly it imports it is raw materials for manufacturing of products. Potash and lignite are the main sources of electric energy in Germany (Germany - Hofstede Insights., 2019). It is the main manufacturer of Mercedes Benz, BMW.T-Mobile they among the most regarded machines that are used in the wo ...
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FDI Germany Name: ID no. Unit code and name: Lecturer name: Assignment # Due Date: Executive Summary Germany is an established European democracy that has a history of free and fair elections. Germany ranks higher than the United Kingdom with regard to accountability and voice. The labour market in the country is also quite flexible even despite the 2009 financial crisis. Nevertheless, the aging German population places a considerable weight on the healthcare system and the economy. Although the technical workforce in the country may be declining the SMEs in the country are quite innovative. The legal structure in Germany is very comprehensive. However, the country is still plagued by tax evasion. Considering the economic and political might of the country in the Eurozone and the world at large, Germany offers an attractive opportunity for foreign direct investment. 1.0 Introduction Germany provides foreign investors with exciting international and national business and marketing perspectives. However, the costs are comparatively high. Costs include employment costs as measured using wage rates and social security charges. Therefore, successful foreign direct investment in Germany requires proper planning and sophisticated operation. The German economy represents almost all industries. Like other countries with highly skilled populations, high costs of employment and high-educated workers the best prospects come from providers of commercial, financial and technical services. The industries in Germany are dynamic and firms can expect room for growth. The country provides an equal opportunity to both domestic and foreign companies. It is important to note that the state provides substantial support in form of subsidies in research and development in order to spur the creation of new products. This report aims at presenting the benefits, risks and cost of investing in Germany (Germany Country Profile, 2013). 2.0 Outline Analysis Benefits Risks Costs Political system A strong democracy A robust federal system Right-wing extremism Strained relationship with France Formulation of EU banking Union Corruption Economic system Highly competitive economy Flexible labour market Exposure from the Eurozone debt Bank failure in the region Slow foreign trade Low local consumption Legal system Comprehensive legal and regulatory framework Formal openness to FDI. Overregulated service sector. The country’s licensing and permit process is quite cumbersome The taxation wedge is high. 3.0 Political system 3.1 Benefits Germany is a stable democracy that has a constitution that stipulates the roles of the legislature, executive and judiciary. The federal government is the top most source of political authority despite that Germany has municipalities and states. The strong federal system has enabled the country to have a centralized rule for the formulation of fiscal, defence, monetary, internal security and legal policies. ...
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