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International Business - Country Analysis - Germany

In: Business and Management

Submitted By tylercan
Words 2030
Pages 9
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 is crumbling (including highways and bridges)
[25]. Their top industries include: steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, and textiles [17]. Germany is a member of the EU, have strong global relationships, and have just signed a CETA pact with Canada. Foreign
Direct Investment took a dip in 2008 and has been

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