...Country Report GERMANY By: Arun Sareen Content Content 2 1. Introduction: Germany at a glance 3 Graph 1.1: World’s largest economies by GDP 3 Graph 1.2: Key economic indicators in Germany since 2000 4 2. Germany’s economy in the lead up to the crisis 4 Table 2.1: Economic data since unification of Germany 5 3. Impact of the crisis in Germany 6 Graph 3.1: Exports in German compared to largest global exporters since 2000 7 Graph 3.2: Germany vs US employment data 8 4. Recovery of the German economy 8 5. Conclusion 9 6. References 10 Introduction: Germany at a glance Germany is a major economic and political force within Europe, and a founding member of the European Union (EU) since 1993. With a population of 82.1m and a Gross Domestic Product (GDP) of €2.5b, Germany is the most populous member state of the EU and has the largest national economy in Europe (EU website, 2014). As indicated in Graph 1.1 below, Germany also has the fourth largest economy by real GDP globally (behind the US, China and Japan) and is the third largest exporter in the world. Graph 1.1: World’s largest economies by GDP Source: International Monetary Fund, World Economic Outlook Database, April 2014 Exports make up approximately one third of Germany’s GDP and are driven by a strong industrial base. Germany is a major producer and exporter of automobiles, transport equipment, mining products, electronic and communications equipment, chemicals and pharmaceuticals...
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...EXECUTIVE SUMMARY This report was commissioned to do an analysis of Germany and make a recommendation as to whether or not to a large Canadian company should expand its foreign operations in Germany. The country was analyzed based on its Macro Environment – country description, Political situation and stability, Legislation, Economic conditions and Cultural issues, as well as on its Factor Endowments. The findings show that Germany has an overall stable and healthy economy with excellent advanced factors of production – especially in regards to productivity and innovation. With new ties to Canada, through CETA, legislation will be easier to deal with. The country also has a similar culture and stable politics. The risks of falling GDP and low FDI do not outweigh the benefits and FDI should soon increase with Germany’s new agreements with Canada and is soon to do a similar deal with the US. It is recommended that foreign operations be expanded into Germany. Operations should proceed cautiously with wages that are stagnant in Germany and try to provide a fair wage to encourage further training and enhance the economy. COUNTRY’S MACRO ENVIRONMENT Country Description: Germany is a highly developed and wealthy OECD country [33] and is the fifth largest economy in the world in terms of PPP [17]. Its GDP/capita in terms of PPP has been on an upward growth trend since 1985 and was just below Canada’s in 2012 (Appendix 1). However, neglect has led to infrastructure that...
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...1. Do you think Walmart could translate its merchandising strategy wholesale to an other country and succeed? I do think Wal-Mart could translate its merchandising strategy to another country, but it would depend on the country. While Walmart might be able to successfully operate in some countries, it might fail in some. For instance, Wal-Mart translated its merchandising strategy whole sale to both Mexico and China and succeeded and yet they failed in South Korea and Germany. To succeed in a certain country, Walmart needs to understand the country’s culture, their customer’s purchasing habits and preferences as well as do some research on their competitors in that country before they enter into a new market. Without taking all these into consideration and adjusting their strategy to the particular market, Walmart could fail in that country. 2.Why do you think Walmart was successful in Mexico? When Walmart hit some headwinds in Mexico, they quickly discovered the differences between shoppers in Mexico and the US which is why WalMart adjusted its strategy to meet the country’s local conditions, first by hiring local managers who understood Mexican culture, and then letting those managers control merchandising strategy, building smaller stores that people could walk to, and offering more fresh produce. At the same time, the company believed that it could gradually change the shopping culture in Mexico, educating consumers by showing them the benefits of its American merchandising...
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...merchandising strategy wholesale to another country and succeed? If not, why not? Wal-Mart is the worlds largest retailer with a bunch of advantages above the rest. I think it is extremely possible for Wal-Mart to translate it’s merchandising strategy wholesale to another country and be highly successful. The main method to focus on is being able to understand the culture and environment that it would need to transition its methods to. For example, China originally turned its nose up at the Americanized way that Wal-Mart presented itself when it first opened. Chinese culture didn’t agree with many things, the main thing being that the meat was sold in Styrofoam or that the fish was dead, it was offensive to them. So Wal-Mart adapted to the Chinese culture and it has been a huge success for them. 2. Why do you think Wal-Mart was successful in Mexico? I think Wal-Mart was successful in Mexico because they hired local managers that were very well versed in the Mexican Culture and they allowed them to control the merchandising strategy as they saw it. After reading this case study I learned that adaption is the key to survival in different environments and economies. Since there are very few vehicles in Mexico transportation is slim, so by building smaller, closer stores was another huge benefit of it being successful in Mexico. 3. Why do you think Wal-Mart failed in South Korea and Germany? What are the differences between these countries and Mexico? When Wal-Mart made steps...
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...more efficiently Nike is expecting china sales to increase. in the endorsement business golf has been the leading sports industry to have endorsers. In the year of 2008 Tiger Woods is at the rank number 1 in golf so Nike sponsors him for 10 years. For the result 4.5 million customers switched to nike because of him. Nike economic started to increased and Nike earned 60 million for the 10 years endorsement period. Political-nike: the main countries for Nike trades are America, united kingdom and other European countries such as france and germany. In all that countries Nike sell product in there is stable political environments where the democracy meaning that the governments in this countries have been elected by the general public in that particular country. The majority nof these countries is because the markets have been boosted with the inclusion of the euro meaning that it is the easier way to trade between countries and the advantage is Nike don’t need to be influenced by exchange rates when reporting goods from one country to...
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...selling its technology. Google’s advertising branch is called AdWords and allows those wishing to advertise to “create ads and choose keywords, which are words or phrases related to the business. When people search on Google using keywords, ads appear next to or above search results” (Google.com). With the rapid success experienced in the U.S., Google quickly grew their business into the global arena by offering search results in hundreds of languages and being available on hundreds of different domains. This expansion helped to significantly increase Google’s revenues and made its IPO launch in 2004 possible. As Google began to dominate search engine market share in France, Germany, and Japan, it created concern and ultimately distrust of the U.S. domination that was taking place in their countries. This distrust led to lawsuits on the grounds of copyright infringement by multiple companies in France who were ultimately successful in the...
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.........he country that once welcomed the tired, poor, huddled masses is now asking for a little reciprocation. And Canada, Germany and Australia are heeding the call. They top a list of the countries most welcoming to expats. There, relocators have a relatively easy time befriending locals, joining a local community group and learning the local language. In Depth: World's Friendliest Countries......he country that once welcomed the tired, poor, huddled masses is now asking for a little reciprocation. And Canada, Germany and Australia are heeding the call. They top a list of the countries most welcoming to expats. There, relocators have a relatively easy time befriending locals, joining a local community group and learning the local language. In Depth: World's Friendliest Countries......he country that once welcomed the tired, poor, huddled masses is now asking for a little reciprocation. And Canada, Germany and Australia are heeding the call. They top a list of the countries most welcoming to expats. There, relocators have a relatively easy time befriending locals, joining a local community group and learning the local language. In Depth: World's Friendliest Countries......he country that once welcomed the tired, poor, huddled masses is now asking for a little reciprocation. And Canada, Germany and Australia are heeding the call. They top a list of the countries most welcoming to expats. There, relocators have a relatively easy time befriending locals,...
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...confederation, not break-up Our base case with an overwhelming probability is that the Euro moves slowly (and painfully) towards some kind of fiscal integration. The risk case, of break-up, is considerably more costly and close to zero probability. Countries can not be expelled, but sovereign states could choose to secede. However, popular discussion of the break-up option considerably underestimates the consequences of such a move. * The economic cost The cost of a weak country leaving the Euro is significant. Consequences include sovereign default, corporate default, collapse of the banking system and collapse of international trade. There is little prospect of devaluation offering much assistance. We estimate that a weak Euro country leaving the Euro would incur a cost of around EUR9,500 to EUR11,500 per person in the exiting country during the first year. That cost would then probably amount to EUR3,000 to EUR4,000 per person per year over subsequent years. That equates to a range of 40% to 50% of GDP in the first year. * The economic cost Were a stronger country such as Germany to leave the Euro, the consequences would include corporate default, recapitalisation of the banking system and collapse of international trade. If Germany were to leave, we believe the cost to be around EUR6,000 to EUR8,000 for every German adult and child in the first year, and a range of EUR3,500 to EUR4,500 per person per year thereafter. That is the equivalent of 20% to 25% of GDP in the first...
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...Build a strategic HR management program for a German company in which most employees are Christian. Nowadays, business becomes internationally over the world. People can come a foreign country and setting up their business activities oversea. There are a lot of important matters that need to be considered before opening business in the foreign country. Human resource management (HRM) is one of such important matters that essentially contribute to the furture business success. Building a strategic HRM program will be very neccesary from the start for business establishment. The HRM shall be discussed in the following paragraphs, especially for a German company. Summary instroduction about Germany Germany covers an area of about 357,000 square km in the central part of Northern Europe. The German population is estimated at 80.5 millions. Christianity is the dominant religion, with 65 to 70 percent of the population. The official language is German. Germany was a founding member of the European Community in 1958. It is part of the Schengen Area, and has been a member of the eurozone since 1999. It is a member of the United Nations, NATO, the G8, and the G20. Germany is a highly developed country in the EU. Germany in Hofstede cultural dimensions According to Hofstede model, Germany has cultural dimensions such as: low power distance, high individualism, high masculinity, high uncertainty avoidance and high longterm orientation. (See below) (Source: http://geert-hofstede...
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...Gustav Streismann, elected chancellor of Germany in 1923, had several problems facing him. Due to their defeat in the First World War, Germany was forced to sign the treaty of Versailles, which was very unpopular. This resulted in problems as Germany was unable to keep to some of the treaty. Germany’s economic problems in 1923 stemmed from the treaty of Versailles: one of the points of the treaty was that Germany had to pay reparations to France, Belgium and the United Kingdom as a payment for the allies’ loss in the war. However, the huge sum of 132000 million marks was practically impossible for Germany to pay, especially after the devastation of the First World War, when a lot of the country’s money had been spent on industry, making war materials. France and Belgium saw this as a refusal to keep to the terms of the treaty; they therefore invaded the Ruhr (the part of Germany where its industries were) to take the money by force. The Germans could not resist this invasion physically as their arms had been dramatically reduced by the treaty of Versailles. Instead, they fought back by passive resistance and refused to work for their occupiers. But, as they weren’t working, they didn’t get paid – so the Weimar government began to print millions of marks to keep up their payment. Consequently, the German economy spiralled into massive hyperinflation – in November 1928, one egg cost 80000 million German marks. Workers’ wages simply could not keep up with the rate of inflation...
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...very end of WWI (World War I), the Treaty of Versailles was signed. Once this was done it made Germany take the fall for the initiation of the World War I. That was apart of the “War Guilt Claus” and Germany was also held responsible for all the material costs in damages. Germany was made to pay a debt for which they were not responsible. Germany was also taken over by the government having control over their rivers, and railroads and canals were to be built on German property and used at the discretion of foreign establishments. Under these provisions, Germany was bound to be in debt. The government basically took control over all of their funding, and their ways of making money. Their economic state was in danger. Germany’s View In Germany's view, how would the country have been treated differently if the principles they attribute to President Wilson had been applied? The League of Nations was a group of people who wanted nothing but peace amongst the people of every state. President Wilson was apart of the League of Nations and he was the only one who tried to keep the peace, but he also wanted everyone to take blame for their actions (for war, and other mishaps) and he wanted everyone to move past it. In the end, Germany still received all the blame. Since the League of Nations was meant to be like a peace treaty, it was odd that Germany was not included in this agreement. Germany was never formally invited to join the League of Nations. The President was afraid that this...
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...5. Brief Cultural Analysis Having selected Germany as the country representing the highest potential for WGI, we then conduct a Cultural Analysis of the country to research important cultural aspects that could influence our Marketing, Operational, Financial and HR/Organizational plans The methodology we employed was to assess the following cultural characteristics: Material Culture Technology. Germany's achievements in science and technology have been significant. Germany has been the home of some of the most prominent researchers in various scientific disciplines, notably physics, mathematics, chemistry and engineering. For most of the 20th century, Germany had more Nobel Prizes in the sciences (physics, chemistry, physiology or medicine) than any other nation. Scientific research in the country is supported by industry, by the network of German universities and by scientific state institutions such as the Max Planck Society and the Deutsche Forschungsgemeinschaft. The raw output of scientific research from Germany consistently ranks among the world's best. Germany’s greatest strength is its automobile industry. German carmakers focus on computer-based assistance systems that could make driving safer and more comfortable. | Economics. Since the late nineteenth century, the German economy has been shaped by industrial production, international trade, and the rise of consumer culture. Consequently, the number of people involved in agricultural production has steadily...
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...were many points that were very unfair on Germany and many of them were understandable since everyone was trying to avoid another war. There are many opinions on who was to blame for the war but the most popular was that Germany was the one who started the war. Many people think that because the German Kaiser was annoying everyone and breaking all the friendly relationships with the countries around Germany the war was initially triggered. After the war Germany was still considered a threat because their economy was still very strong and their army was still in France, and capable of fighting. This is one of the other reasons that the treaty was made very harsh to make sure that the Germans could not start another war. Also you cannot say that the Germans were particularly nice either, when they were asking for a treaty with Russia in Brest Litovsk and they made it very harsh themselves. Another point of the treaty was not fair, and that was that it was not negotiable. That was very hard for Germany because the whole treaty was already harsh and they could not negotiate it made it even worse. On another side the land that was taken from Germany was mostly populated by the French on the Alasace-Lorraine and East Germany was mostly populated by Polish. On the other side the treaty was not fair because Germany was fully blamed for the war when other countries where involved in the beginning of the war. Germany was one of the countries who started the war but it was because of...
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...isolation into turkish community districts like Koeln-Mühlheim. Today, Turks represent about 4-5% of Germany’s total population. What does the word “guest workers” exactly mean? A guest worker is defined as “An individual with special permission to work on a temporary basis in another country when a shortage of labor is an issue” (Business dictionary, 2012). Everything started when the recruiting agreement was signed on the 31th of October in 1961 by Turkey and Germany. By this time, Germany faced the highest demand on labour in history. The ”economic miracle”, the rapid reconstruction and development of the economy of West Germany after World War II, lead to the highest demand on the labour market in german history. To the same time Turkey suffered under mass unemployment and a constant growth in population. The recruiting agreement between Turkey and Germany was the start for a large-scale immigration of guestworkers. The requirements for acceptance were a passed health check proofed by german doctors and being unmarried. Within the first year 7,116 male turks migrated to Germany as guest workers. The original plan was to stay for up to 3 years, saving as much money as possible in Germany before returning home. Soon it became obvious that people felt comfortable within their new work and life situation. Turkish people had the...
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...Turkey which made their empire stronger and bigger. Serbia, which was an ambitious but a small country, was too weak to defend itself. Nevertheless, they were determined to triumph. Fortunately, Russia opposed to it as it wanted al Slavic people to be liberated and was extremely annoyed at Austria Hungary for acting without informing them. This crated a chance for a potential rebellion to rise as Russia, the strongest out of the three, is ready to support Serbia. Therefore, Germany intervened and decided to help Austria Hungary which crushed Serbia’s hopes of reunion as Russia felt inferior and too fragile to fight both the countries especially with France and Britain’s refusal to assist. Consequently, the tension in Europe was raised significantly as Serbia was annoyed at Russia. Consequently this raised the tension in Europe significantly as Serbia was annoyed at Russia for withdrawing help and was more determined to oppose Austria Hungary. Russia, on the other hand, was absolutely humiliated and it was determined not to repeat this. As a result they decided to enhance the army and seek for revenge. This Russia France and Britain closer together because of the mutual hatred for Germany In 1915 France wanted control of Morocco which was one of few regions in North Africa that wasn’t controlled by a European power and as per Entente Cordiale. Britain had to support them. However, Germany decided to oppose France to test Entente Cordiale and expand its own empire and it already...
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