FACULTY OF BUSINESS MANAGEMENT

BACHELOR IN BUSINESS ADMINISTRATION OF HUMAN RESOURCE

MANAGEMENT (BM243)

INTRODUCTION TO INTERNATIONAL BUSINESS (IBM530)

ASSIGNMENT 1: GROUP COUNTRY REPORT

PREPARED FOR :
MR. SYED ASHRENE SYED OMAR

PREPARED BY :

NBI3A
MAC - AUG 2023

SUBMISSION DATE :
SEMINAR 5 (16 Jul 2023)
 1.0 Introduction

*Explain background of the country.

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 2.0 Culture

Discuss country’s national identity including ethnicities, languages, and religions

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 3.0 ECONOMY
3.1 TYPE OF ECONOMY

Germany is the world leader in the manufacture of high-quality autos, machinery, electrical
equipment, and chemicals. In Germany, 99 percent of businesses are classified as small and medium-sized
companies (SME). These firms are known as 'Mittelstand companies' in Germany and are global leaders in
their respective fields. They do not broaden their emphasis greatly, but they do expand globally to acquire
greater market share. As previously stated, Germany has the world's fourth-largest economy, trailing only the
United States, China, and Japan. Germany's nominal GDP in 2020 was $3.85 trillion. Germany is also one of
the world's wealthiest countries.

The economy of Germany is diverse. For both consumer products and commercial services, it permits
a free market economy. However, the government still sets rules in certain places to safeguard its residents.
Germany has a command economy in defence because everyone benefits while wealthier earners are subject
to higher tax rates. Education and health insurance are provided by the government. This implies that people
contribute to the system in accordance with their income and receive benefits in accordance with their needs.

3.2 MARKET ORIENTATTION

The importance of market orientation in corporate management has long been a source of contention.
This empirical research undertaken in Germany, the largest European market, demonstrates that market
orientation, along with other basic elements of management, contributes significantly to organisational
performance. Indicates that popular practical initiatives aimed at implementing market orientation throughout
the organisation may have a detrimental impact on business performance. A variety of steps mentioned in this
article might help to mitigate these hazards. Detecting these dangers necessitates a comprehensive research
approach to company management, of which market orientation is merely one essential feature. An innovative
method for doing empirical research on the subject of whether market orientation has an influence on
company performance is to adopt an integrated viewpoint of research, such as the one provided in this study.

The extent to which corporate ideology is reflected in selling-oriented thinking. the extent to which
company ideology is reflected in customer-oriented thinking. the significance of customer pleasure as a
business decision-making objective. According to this approach, market orientation may be viewed as a
distinct fundamental corporate management dimension that is connected to other basic management
dimensions. In the fundamental model, t is composed of just three indicator variables (sales orientation,
customer orientation, and goal: customer happiness). These, in turn, strongly correlate in the majority of cases
with the 10 external criteria of market orientation, indicating high criterion validity.

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 A Multidimensional Model of Corporate Management

Market orientation may be viewed as a distinct fundamental corporate management dimension,

connected to other basic management dimensions, according to this approach. The simple model's t simply
consists of three indicator variables: customer orientation, sales orientation, and goal of customer satisfaction.
These in turn correlate with the 10 external market orientation criteria in the majority of cases strongly,
indicating high criterion validity.

Germany has a free market, but it also has a significant role for the federal government in the
economy. It is considered self-evident that it should pay for the construction and upkeep of the economic and
social infrastructure, including the train system, canals, telecommunications, and postal systems. The regional
and municipal rapid transit systems also get funding from the federal government, the states, and the cities.
Government and business work together to share the expenses of R&D, as seen, for instance, in the nuclear
power sector. The defence sector is one where federal intervention is particularly substantial. The coal
industry is arguably the most notorious example of subsidisation, while agriculture has historically had
significant governmental protection, despite being under the control of EU institutions today. Another
prominent area of government intervention is regional planning, where the federal government supports
economic growth in rural and industrial "problem" areas. States and cities also take action with plans to
support local or regional development.

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3.3 IMPORTANT NATURAL RESOURCES IN GERMANY

Germany has one of the world's greatest economies. The country is rich in natural resources, ranging
from coal reserves to natural gas. Natural resources contribute considerably to the national economy by
producing energy or providing commodities for export. The development of technology during the German
industrial revolution ushered in the extensive use of natural resources. Germany, which has little native natural
resources, imports the majority of its basic materials. It is a large producer of bituminous coal and brown coal
(lignite), with the latter's main areas being west of Cologne, east of Halle, south and southwest of Leipzig, and
in Lower Lusatia in Brandenburg. Other minerals found in abundance include salt and potash, which are
mined on the outskirts of the Harz mountains. Most metallic mineral mining in western Germany ceased for
economic reasons prior to unification; in the 1990s, the centuries-old mining and processing of copper ores in
the Mansfield area of eastern Germany, as well as the mining and processing of uranium ores for the Soviet
Union in the Ore Mountains, ceased.

 Coal

Germany possesses some of the world's greatest coal deposits and is the global leader in lignite
production. Germany's coal reserves are estimated to constitute close to 5% of global reserves. The
Garzweiler mine in Germany is Europe's largest lignite mine. Coal is critical to Germany's economy since
it has been the country's primary energy source since the industrial revolution. Following the conclusion
of the Second World War, hard coal fuelled the country's economic expansion. Because of their location
or depth, some of Germany's coal resources are difficult to mine. Because mining such resources is
exceedingly expensive, the German government frequently does not consider mining the deposits
economically feasible. In the 1960s, the German government implemented subsidies to lower the costs
suffered by mining corporations in the extraction of hard coal. In 2018, the German government plans to
shut its remaining two hard coal mines. In Germany, lignite extraction is restricted to three areas, with
four corporations controlling the mines.

 Natural Gas

The amount of natural gas produced in Germany has continuously dropped since 2003. According to
The World Factbook, Germany's natural gas reserves are rated 50th in the world, with an estimated
capacity of 175,600 million m3. German geologists' research indicates that the country's reserves are
nearing depletion. Natural gas is mostly used for heating in homes and small enterprises. In 2017, around
13.1% of natural gas was used in the generation of electricity. The infrastructure in Germany only allows
for natural gas imports via pipelines.

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 Germany is just 8% self-sufficient in natural gas production and must import the remainder. Natural
gas is in significant demand in Germany, accounting for slightly more than 22% of the country's primary
energy consumption. Germany imports the most natural gas in the world, with Russia, Norway, and the
Netherlands contributing the majority of the country's imports.

 Uranium

Uranium was mined in Germany, mostly during the division, with East Germany exploring for
uranium more than West Germany. The uranium was mined in both underground and open pit mines, and
subsequently processed at nearby facilities. Prior to German unification, East Germany produced over
7,000 tonnes of uranium per year. Uranium was a critical component of nuclear weapons and nuclear
energy installations. Before it was closed down during Germany's reunification, the industry employed
over 400,000 people. The main reason for its shutdown was the damage it made on the environment. In
2007, the Königstein mine produced around 38 tonnes of uranium. East Germany was rated third in
uranium production, with about 230,400 tonnes produced.

3.4 GROSS DOMESTIC PRODUCT (GDP)

In current US currency, the GDP per capita is $46,208.4. The German economy, like many major
countries, is experiencing a post-pandemic sluggish recovery due to supply chain disruption. In Germany,
inflation was projected to be approximately 5.3%. One explanation for the high inflation is that prices and
VAT were temporarily reduced in the second half of 2020.

Exports (in value added terms) account for approximately 32% of German GDP, which is relatively
low in comparison to other OECD economies but high in comparison to large countries such as Italy, France,
and the United States, which may reflect relatively higher levels of inward investment contributing to
Germany's relatively high GVC integration as measured by the import content of exports. Since the crisis,
Germany's export
Orientation emphasis has grown.

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Germany Inflation Rate

In May 2023, annual inflation in Germany was confirmed at a 14-month low of 6.1%, down from
7.2% the previous month but still significantly above the European Central Bank's objective of around 2%.
Energy inflation fell drastically to 2.6% in April from 6.8% in April, owing mostly to a large base effect from
the previous year, particularly for natural gas (25.6% vs 33.8%), firewood, wood pellets (23.8% vs 29.8%),
electricity (12.7% vs 15.4%) and district heating (11.4% vs 12.3%). Simultaneously, food prices rose at a
slower 14.9%, compared to a previous 17.2% increase, driven by dairy goods (28.2% vs 34.8%) and bread and
cereals (19.3% vs 21.3%). Services inflation fell to 4.5% from 4.7% in April, with rent rising 1.9% after rising
2.0% in April. Consumer prices fell 0.1% month on month in May, the first monthly decrease in five months.
The CPI rose 6.3% year on year, the slowest since February 2022, and fell 0.2% month on month.

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 Inflation rate at +6.1% in May 2023
The rate of inflation has continued to slow but remains high and the year-on-year increase in energy
prices was much smaller in May. Thus, food prices continued to be the biggest driver of inflation." According
to the Federal Statistical Office, consumer prices in May 2023 declined 0.1% from April 2023.

Germany Employment Rate

In the first quarter of 2023, Germany's employment rate dropped to 77.20 percent from 77.30 percent in the
fourth quarter of 2022

The definition of employment rates is the percentage of the labour force that is actively seeking
employment. They are determined by dividing the population of working age by the employment rate. A
greater employment rate is seen as a reliable sign of a functioning labour market, whereas a low employment
rate may point to underlying problems.

One of the most common and helpful indicators for evaluating the health of a country's labour market
is the employment rate, which is typically used in conjunction with the unemployment rate. A high
employment rate is typically seen to boost a nation's GDP. Employment rates are greater in nations with
higher GDP rates.

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 Employment in April 2023 stable at high level
In April 2023, there were around 45.7 million people living in Germany who were employed. The
seasonally adjusted number of people in employment increased by 15,000 (0.0%) in March 2023, according to
preliminary figures by the Federal Statistical Office Consequently, the growth was less than it had been in
earlier months. The rise in the seasonally adjusted number of people in employment month over month in
February and March 2023 was 56,000 and 57,000, respectively.

3.5 MAJOR INDUSTRIES IN GERMANY

 Machinery, Automotive, And Aviation Industry

In terms of nominal GDP and GDP PPP (Purchasing Power Parity), Germany has the largest social
market economy in Europe and ranks fourth and fifth internationally. Germany is well-known around the
world because to its industrial sector, which creates some of the highest-quality goods. The nation moved up
to third place among all exporters of products and services in 2016. According to analysts, the German
economy is still reasonably steady, making it less probable that the nation would experience financial disaster.
53 of the top 2000 publicly traded firms worldwide by revenue are based in Germany. More than half of all
international trade fairs are held in this nation, which also ranks first in terms of the quantity of trade shows.

The high-tech nation is driven by the machinery and equipment industry, which also pioneers
developments like robots. Germany continues to provide cutting-edge manufacturing solutions and has a solid
engineering heritage. With a workforce that is always expanding with more than 6,419 people, this industry
produced about $267 billion in revenue in 2015. In terms of both production and sales, the Germans dominate
the European automobile market. Many people throughout the world are aware of how inventive and exact
German automakers and suppliers are. German brands like Bayerische Motorenwerke (BMW), Daimler-Benz,
and Volkswagen are well-liked around the world for their superior engineering, innovation, safety, and
designs. For the past 125 years, the nation has produced top-notch research, invested in a skilled workforce,
and built out an excellent infrastructure.

 Chemical And Medical Industry

In terms of sales both inside Europe and exports to other continents, the German chemical industry is at
the top of the European market. Germany has a strong infrastructure for chemical research and development.
The educational system of the nation also generates qualified graduates who are prepared for the workforce
and provides investors with a favourable and market-ready environment for chemical goods. Germany sold
$168 billion worth of chemical goods in 2016, trailing only China and the US. Out of the overall sales, 60% of
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the items were exported by the nation to other European nations, 17% to Asia, 7% inside the NAFTA
infrastructure, 3% to Latin America, and 3% to the rest of the world. After investing $3.83 billion in R&D,
this outcome was achieved.

 Energy And Environmental Technology Industry

Germany is a global leader in the creation of environmental and renewable energy technology.
Furthermore, traditional energy is gradually giving way to renewable energy. Germany wants to utilise 60%
more renewable energy by 2050 while cutting greenhouse gas emissions by 80%. The nation has also made
investments in energy grids, solar energy, photovoltaics, biofuels, offshore wind energy, and solar energy
projects. Germany now has 200 GW of power generating capacity, which is the most in all of Europe. Solar
energy is used in Germany to produce heat and power.

4.0 POLITIC
Germany is a parliamentary democracy and a federal republic. The Chancellor of Germany is the head
of the country's democratically elected executive branch. The Basic Law for the Federal Republic of Germany
(Grundgesetz für die Bundesrepublik Deutschland) is the formal name of Germany's constitution. It was
accepted by the federal German state on October 3, 1990, and it went into effect on May 23, 1949. The
judicial branch, which is in charge of administering justice, is one of the three branches of government that
make up the state. All democracies must uphold the separation of powers, which is a fundamental principle
that is spelt out in Germany's Basic Law. Governments belong to the executive branch, whilst parliaments are
part of the legislative branch. The judicial branch is crucial because judges in state and federal courts are
autonomous and only base their judgements on the law. The Federal Constitutional Court, which oversees
adherence to the Basic Law, is the highest court in Germany. The rulings of the 16 constitutional judges are
binding on all other governmental agencies.

In terms of procedure, the Federal President is the highest-ranking representative of Germany. The
President of the Bundestag is the next-highest official in terms of procedure. The Federal President's deputy is
the President of the Bundesrat. The prime minister of one of the 16 states rotates into this position for a full
year. The Federal Chancellor, who establishes policy guidelines, holds the post with the most political sway.
Another prominent state representative is the President of Germany's highest court, the Federal Constitutional
Court.

 Explain the legal framework on international trade and investment policy.

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 REFERENCES

Benjamin Elisha Sawe (2018). What Are The Major Natural Resources Of Germany?. World Altas

Martin Orth (2023). Germany as an industrialised country – the main facts. deutschland.de

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