General Information about Germany - Essay Example

General Information about Germany Introduction As the leading economy of Europe and second most influential country following Russia, Germany is a crucial partner of the economic, defense and political organization of the continent. This paper aims to investigate and outline some information about German. Discussion Development level and infrastructure These are current changes and transformation in the creation of innovative information infrastructures and development in the field of agriculture, industry and technology. As the main and second increasingly influential EU associate, German has achieved various economic, political, infrastructural and trade developments compared to other European nations. These developments and continued advancement of infrastructure have enormous impacts on the outlook of Germany as a nation, (Arther 23). Agricultural development Agriculture in Germany has attained extensive explosion in productivity in the past few years. Agricultural development has succeeded in producing increasingly effective while becoming increasingly ecologically compatible. Agricultural development has been due to technical advancement and utilization of state-of art machine that needs skilled and trained workforce, which has boosted agricultural production in many areas. Germany agriculture has attained a crucial aspect that enabled the use of new technological advances. Similarly, agriculture and forestry have achieved substantial success for Germany population wishing to work with biodiversity. In addition, new money banking corporations ate emerging in the energetic and crucial recycling of natural materials. Newly emerging rural fields is differentiated by various economic activities. Forestry and agriculture is part of Germany economy, society and environment and act as indispensible associates to solve new global limitations (food security, protection of climate and reliable supplies of energy). Similarly, the Common Germany Agricultural Policy has gone through various reforms to react to changing economic needs and societal requirements and expectations. Today, the CAP benefits the Germany societies by promoting the production of secure and increased quality agricultural products and food, thus, supporting the sustenance of prosperous rural populations and providing incentives to protect farmers and the environment, (Frase 45). Similarly, Common Agricultural Policy faces some limitations like increasing globalization, increasing environmental challenges (availability of water, climate change and quality and loss of biodiversity), increased price volatility and issues of food insecurity. Industrial development Germany industrialized increasingly faster and by 1890s, Germany was the largest industrial power in Europe. Employment in the mining and industrial regions has outstripped agricultural employment in the modern era. Germany industrialization is sparked by infrastructural developments (railroad building) coal mining developments and technological advancements. Experts agree that manufacturing is the basis of the economic development of Germany. Germany belongs to the G-7 team that represents the wealthiest countries in the globe. Germany has various manufacturing areas, and the Ruhr is the largest industrial sector and the busiest worldwide. It produces a large number of Germany steel and iron used to make tools, machines, ships and automobile. The nation has a better refutation globally for exceptional designs and attractive products workmanship including vehicles, (Bertsch 63). Various factories in Germany are becoming Modernized and IT systems, and technologies are used in industrial production. Chemical industry is an influential sector in Germany and entails firms such as Bayer and others. Similarly, vehicle designing and machine construction is another key Germany industry that includes the manufacture of aircraft, shipbuilding, creation of automobiles and plant machinery. Developing industries includes electronics, electrical sectors and office machines sectors. Similarly, while various industries are prosperous, ancient, heavy industries are facing significant decline such as shipbuilding and steel industries. Competition from current technology and Japanese technology is now diminishing the Germany production profits in the global market. Technological development Germany is a technologically intensive country that owns the globe’s largest chemical industry. The biotech industry is establishing its foundation and universities of Germany are doing incredible investigations on nanotechnology. In the near future, various emerging technologies in optical communication field links to materials of nanotech will find their routes into vehicles. A technological innovation is generating changes that push Germany automobiles from their present challenges. They aspire to invent the inter-automotive internet. Technology in the nuclear energy field has developed immensely, and development in technological performance is essential for the success of Germany industry and companies in the global market. Current and new, creative products that can compete on global markets manifest a technological operation, (Ezekiel 123). Differences and similarities with US In terms of physical distribution and communication networking, there are enormous differences between Germany and United States. In both nations, development and infrastructural services boost trade and economic development, and the cost and quality if infrastructure and services influence trade. Similarly, in the US infrastructural services and communication networks are evenly distributed and developed than in Germany. Physical infrastructure and communication networks are significant for transferring trade products and services from and to other nations. Regulatory market entry The common European market mainly implies that products, people, services and capital entering the country can circulate without restrictions of EU. Trade goods to Germany from non-European Union nations are subject to regulations, customs and should adhere to the diverse standards and requirements (tariffs and nontariff requirements). Tariff import restrictions emanate from custom regulations and entail custom duties imposed on imported products. Nontariff restrictions emanate from foreign trade regulations or international laws. Products from non-European Union nations are bound to VAT and import turnovers tax can reduce in some cases, (Bertsch 68). Foreign trade laws on imports are restrictions requirements for authorizations and monitoring strategies (control importation and exportation of trade goods). Trade liberalizations in Germany has favored multilateral trade and trade in earlier none tradable goods such as agricultural products. Trade regulation polices and labour migration laws within Germany have helped sustain economic growth and extensive workforce. Imports goods from non-EU nations must undergo various custom duties or procedures and are liable to all possible customs before entry to Germany. Similarly, right channels of distribution must be followed for all imports. US documentation and export regulations are used when exporting goods from Germany to other nations and requirements differ depending on destination and goods. They include shared documents of exports, transportation laws, export compliances regulations, origin documents, shipment permits, (Frase 78). Export regulations restrict exportation of unauthorized goods from Germany to other nations and international market. Similarly, various custom procedures must be followed when exporting goods from Germany. Germany must adapt to foreign standards that business partners contract to accept. These standards are essentially utilized as reference in policies and regulation of trade. Trade policies and regulations define the accepted industrial practices (practices that are ecologically friendly, ensure better utilization and exploitation of natural resources and protect and meet economic and societal requirements). Foreign standards and payment laws enable enforcement of prohibitions on internal and external foreign trade for the sake of foreign policy, foreign trade and security of the nation. Legal considerations The legal system of German is anchored on the tradition of civil law that has its basis on five codes such as civil process, civil, economic, criminal process and criminal. Germany business operations are free from laws controlling routine business. The law does not differentiate between foreign people and German nationals regarding investment or creation of companies. German law protects intellectual property rights via patent regulations that expand common requirements by domestic to international business operators. German Judicial procedures enforce investor’s rights and protect their business. German laws allow companies to organize their investment and licenses given by legal authorities offer a secure foundation for the organization of projects, (Scott 102). The system of civil includes taxation laws, civil code, government regulation and laws of the constitution. Licensing laws provide the right utilization of a patented product they give a third party permission to use or exploit the property without ceding ownership. The industry and German administration allow international investment in the nation, and regulations offers international entrepreneurs’ local consideration. Germany law allows internationally controlled firms authorized by Federal Republic of Germany equal treatment as local firms. Investment law treats foreigners same as private companies, and there is few key nationality qualification on directors or stakeholders, and investors do not need to register their investment objectives with any administration entity. Foreign companies face similar investment challenges as domestic companies for instance, increased marginal income rate of tax and labour policies that hinder dismissal and hiring. German provides for various tax laws that include investment tax act, partnership reporting tax and CFC reporting tax. Taxation laws are crucial because they ensure compliance with laws of Germany trade and government, ensure equal tax treatment such as engagement exemption, ensure constant filings amidst investors and co investors and minimize the adjustment risks upon tax audits, (Frase 96). Employment laws control the connection between German managers and employers and workers. The employment law also known as employee protection law of Germany is strongly biased as it favors workers. Germany employment law embraces various rigid provisions that protect workers from unjust practices. It covers such areas as the role of employment contract, work time and vacation, sickness, employment termination rules and hiring criteria. Advertising laws affords comprehensive security to advertising agents and journalist and allows provision and transmission of information to the public. The law controls the ethical and right ways of information dissemination through radio, TV programs and other media sources. It outlines the legal procedures in information display to ensure intellectual property rights and other ethical issues are protected. Government assistance The increasing international company mobility and gradual abolition of an obstacle to world capital flows have encouraged competition amid administrations, to attract international direct investment via tax incentives. Germany government provided various incentives to various investors irrespective of whether such investors are have Germany origin or not. The government, certain federal states and EU entity give funds, to boost economic development. The facility of investor production organizes costs that are crucially lowered through various Germany measures of investment incentive packages, (Scott 56). In addition, cash incentives given include non-payable grants and loans for economic development. Germany federal government encourages research via High technological strategy that defines crucial areas due to their impacts in resolving world problems. The government also supports crucial technologies that serve as drivers of innovation. The state government of Germany offers innovative subsidy programs via their commercial development banks that are open to diverse technologies. Germany uses tax holiday incentive to promote economic development in growing companies and industries. Tax holidays offer advantages when the firm start earning income and reduced corporate rate of tax benefits accumulate gradually over time. Tax holidays are mainly for the benefit of temporary investments and reward small companies instead of existing companies. However, beneficial tax holidays can influence private company’s decisions and distort resource allocation. Similarly, they can attract business ventures looking for short-term ventures, profits thus imposing a large administrative burden to the country, (Kuhnen 52). Conclusion Germany is becoming a leading nation in economic and trade development. The combinations of various factors have contributed to the modern industrial, technological, trade and technological developments. For instance, effective and productive trade laws and agreements technological advancements ad effective administration are crucial to sustainable development in Germany. Works cited Arthur, Anderson. Tax and Trade Guide, Germany. Chicago: Arthur Anderson & Co, 1976. Print. Bertsch, Franz. Technological Research and Development in Germany: Current Situation and Outlook. Bonn, Germany: Inter Nationes, 1996. Print. Ezekiel, Mordecai. Towards World Prosperity, Through Industrial and Agricultural Development and Expansion. Harper & brothers, 2007. Print. Frase, Dick. Law and Regulation of Investment Management. London: Sweet & Maxwell, 2011. Print. Kuhnen, Rainer A, and Paul-Alexander Wacker. German Trade Mark Act and Regulation of January 1, 1995. Köln: Heymann, 1995. Print. Scott, Tom. Society and Economy in Germany, 1300-1600. Houndmills, Basingstoke, Hampshire: Palgrave, 2002. Print Read More