Risk Assesment : Germany - Research Paper Example

Major areas to be evaluated include cultural affinity, political stability, macroeconomic conditions, and legal framework compatibility among other conditions. Political stability/risk We keep in mind that Germany has a mature and very stable institution, leading to transparency in governance, prudent policy outcomes, predictable, and great respect for the rule of law. Moreover, coalition governments have ever run Germany and majority of its federal states. This has promoted a quite cooperative multiparty environment and the predictableness of the government policy.

Voters appear to prefer moderate parties and, nothing like in other European countries, immoderate parties have not become very popular among the Germans’ population. Over the last 20 years, the partisan setting has however changed and instead has turned to be greatly disjointed. In my view, continuation of this development could increase the challenge of creating strong governing coalitions, but on the better side, this may increase Germany’s positioning towards uncontroversial policies (Hill, 2013).

In terms of political stability discussed above, Germany will score 45% out of 50%. Macroeconomic conditions Even though the recession has paralyzed Germany’s public finances, the weakening is not as severe as that of various highly rated nations. Relatively resilient financial recoveries gave rise to the overall government deficit reducing up to 1 percent of GDP in 2011. The net overall government debt reduced marginally to less than 80% of the GDP in 2011, after increasing steeply in 2008 and 2009, mostly due to the inclusion of currently established trial institutions or bad banks (Globaledge, 2013).

Due to favorable microeconomic conditions, it gets a 9% out of 10%. Legal system compatibility Even though the legal system of Germany does not resemble the United States constitutional Bill of Rights line to line, legal officers who have gone through concluded that it is a fair system. It has many provisions that ensure that fairness of trials and investigations is safeguarded. The authority of German police force matches that of other developed countries including the US. If an individual is required to report in a German court, he or she must be properly served with a summons and is punishable if he fails to show up in court (Federal Foreign Office, 2013).

In Germany, drug offences such as trade or ownership of narcotic such as bhang are considered as serious offenses. Germany law holds very strict requirements concerning possession and registration of guns and other weapons. Any good sold by an individual must at least carry a half-year warranty according to law except when this has been excluded explicitly. A major difference between the United State and German laws is particularly obvious in areas of contracts. In the United States, it is common, and very important to spell out each and everything in a contract or an agreement.

The rule of law in Germany however, suggests that the shorter the contract the better it is. For example, the lease concerned with notice periods may contain nothing, repair required or measure in case the tenant lacks to pay rent, but these items are still observed because of the law. A contract to rent a house or an apartment for a specified period can never be dismissed early except in occurrence of extraordinary