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International Business - Foreign Investment Guide - Book Report/Review Example

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Name Instructor Course Date International Business-Foreign Investment Guide Introduction With the current advances in technology being realized in the world today, transactions that used to be time consuming and difficult to conduct are becoming easier to do…
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International Business - Foreign Investment Guide
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Download file to see previous pages To date, foreign market identification and investment opportunities have taken center stage in many business oriented forums. Many businesses are being faced with great challenges when it comes to making critical decisions with regards to which foreign market offers the best investment opportunities and optimal returns on the investments made. This paper intends to focus on Germany as an investment destination for a Canadian Investor. Background Germany is a country with a parliamentary democracy system of government. The parliamentary democracy system of government, is a political system in which parliament (legislature) has the authority to select the government. The government in this case comprises of the prime minister, chancellor or premier and the cabinet ministers. The selection of the government is based on the party strength which in turn depends on the election outcomes. Under this system of governance, the government is responsible to both the people and the parliament ( Germany has the highest population in the European Union. According to a population census conducted in 2010, Germany’s population stood at 81.6 million people up from 72.7 million people in the year 1960 (Trading Economics). Germany has approximately 1.19% of the world’s population. This basically means that one out of every 84 people resides in Germany1. Germany is currently the tenth largest Canadian foreign investor. This demonstrates the cordial international trade relationship that exists between Germany and Canada. Germany’s total FDI in Canada was in excess of 10 million Canadian dollars as of 2010. Some of the German businesses that hold major investments in Canada include BASF, Siemens AG, Bayer AG and Daimler (Foreign Affairs and International Trade Canada). Siemens AG is a German multinational that is listed in the Frankfurt Stock Exchange. It is a global powerhouse in electrical engineering and electronics that operates in the energy, healthcare and industry sectors of the economy. Germany conducts business with Canada in terms of imports and exports. In a 2010 ranking, Germany was ranked sixth as a top ten partner to Canada in merchandise export trade. Canada exported goods worth over 3 billion Canadian Dollars to Germany in the same year. Some of these exports include mineral ores and inorganic chemicals (Foreign Affairs and International Trade Canada). In terms of imports, Germany was ranked as the 5th largest supplier of goods in 2010 with imports standing at 11.4 million Canadian dollars. Canada imports automotive parts from Germany, electrical machinery and equipment (Foreign Affairs and International Trade Canada). On the international business perspective, Germany ia an active member of WTO, IMF, OECD, and World Bank Group. Germany is a signatory to EU but not to APEC. Germany is also not a signatory to NAFTA. This is based on the organization’s list of member countries. Geographically, Germany is bordered by Denmark and the North Sea to its north. To its south, Germany is bordered by Switzerland and Austria. To its east, Germany is bordered by Czech Republic and Poland. To its west, Germany is surrounded by Belgium, France and Netherlands. It is the third largest country worldwide, with the number of immigrant s being highest. Within the European continent, Germany has the biggest economy (Invest in EU). Germany’s social market economy is one of the most liberal thereby presenting a good business environment. Looking at Germany’ ...Download file to see next pagesRead More
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