Assignment'S Detail Course Code: IBM537
Assignment'S Detail Course Code: IBM537
Assignment'S Detail Course Code: IBM537
GROUP : BA2463B
2019291328
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1. Germany and its region
With 16 states, Germany is a federal republic. The location can be called relative and absolute.
Absolute location uses the capital to place a nation on a coordinating scheme (longitude and latitude).
The absolute position of Berlin, Germany is 52.5 ° North, 13.3 ° East (more precisely, 52.5167 °
North, 13.3833 ° East). A relative position is where a place is based on its setting.Germany is made up
of the Netherlands, Belgium, France to the west, the Baltic Sea, the North Sea, Denmark to the north,
Poland, the Czech Republic, and Austria to the east, and Switzerland to the south, Luxembourg. To
get to Germany from the US, you have to travel over the Atlantic Ocean, cross the northern central
part of France, and land at a German airport.
Region
Germany is a section of Northwestern Europe. This is a perceptual region (ideas in our minds that
describe an area of "sameness" or "connections," based on accumulated knowledge of places and
regions). Within it, Germany also has regions. Germany can be split into 3 major perceptual regions.
These three regions are the Northern Plains, Central Uplands, and Alpine Forelands. Germany can
also be divided into seven formal regions.The seven regions provided by the Federal Office for Nature
Conversation (Bundesmant for Naturschutz) are the Northeast German Plain, Northwest German
Plain, Western Central Uplands, Eastern Central Uplands, South German Scarplands, Alpine Foreland
and Alps, and the North and Baltic Sea. The seven formal regions for the three perceptual regions are
more descriptive regions.
2.
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a)History
Behind the success of Germany today, who have thought that Germany had experience a very
challenging dark ages. Germanyhad suffered defeat in World War I and II. After losing in world war
ii, Germany was divided into 4 zones controlled by the Allies party. the zones are in the southwest
part controlled by France, northwest by Britain, south by the United States and east by the Soviet
Union. The aim is to unite in economic improvement as that was a condition to the rise of the
European war. The powers failed to uplift the economy as they were only pursuing the own interest in
each zone. This cause misunderstanding between United States zone and Soviet zone and created
West Germany and East Germany. In 21 September 1949, West Germany was established as a federal
parliamentary republic with a "social market economy". In 7 October 1949, Soviet Union established
Democratic Republic of Germany or East Germany. as a federal parliamentary republic with a "social
market economy". At the end of 1989, the Berlin Wall was successfully demolished after the fall of
the communist government of the Soviet Union. The expanded continuity of West Germany was
considered by United Germany, so it maintained its membership in international organisations. Berlin
became the capital of Germany. Since reunification, Germany has taken a more active role in the
European Union, signing the Maastricht Treaty in 1992 and the Lisbon Treaty in 2007,and co-
founding the Eurozone. In order to secure stability in the Balkans, Germany sent a peacekeeping force
and sent German troops to Afghanistan as part of a NATO effort to provide security in that country
following the Taliban's ousting. Angela Merkel became the first female chancellor in the 2005
electionsA stimulus package of EUR 50 billion was approved by the German government in
2009.Among the main German political projects at the beginning of the 21st century are the
promotion of European integration, the energy transition (Energiewende) for renewable energy
supply, the 'debt brake' for balanced budgets, steps to increase the fertility rate (pronatalism) and high-
tech methods for transitioning from the fertility rate (pronatalism). In 2015, Germany was affected by
the European migrant crisis: more than a million migrants were taken in by the country and a quota
system was established which dispersed migrants through its federal states.
b)Culture
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Germany is the heart of Europe. Its people, language and tradition are the unique culture in Germany.
The most interesting is, Germany is known as the country of poets and thinkers. Despite the most
stable economies in the world, Germany play important part of The Holy Roman Empire. If we said
Germany, there are many stereotype about that country such as they like to drink a lot of beer, they
are hardworking and punctual and also unemployment Germany are very low. Germany has strong
family values which means that we can see that their family gathering or live near each other. It is so
interesting so let us explore one by one their culture.
Language
Firstly, they speak Germany language and also has four minority language (Upper and Lower
Sorbian, Romani, Danish ,North and Saterland Frisian)
Clothing
Every country in the world is easily identified by their own traditional clothing. For example, Saree
known from India as well as Hanbok from Korea. As we can see today, most Germans dress modern
and western. They dohave their own traditional clothing. The famous traditional clothing is
Lederhosen. This always wear by rural men especially for farm work and manual labor. Then, for
women is Dirndl, made with short puffy sleeves. Actually, Germany comes from many different
culture so they don’t have any formal one. Today, these clothing do not seen in the farm but they
always wear during beer festivals.
Cuisine
Most people in Germany love beer that’s why they have beer festivals and estimated that average they
consume beer around 140 litre per year. The national dishes includeRouladen, German noodles
(Spätzle) and Schnitzel. Their traditional dishes have a lot of choices includes vegetarians. Then,
sausage is the important dish as they are their favourite. The sausage are made from pork, beef,
chicken and vegan that flavoured differently.
Architecture in Germany
There are many unique infrastructure in Germany such as Munich and there is one park that was rich
nature at the same time have an unique infrastructure attractions that called Kromlau. There is
interesting museum that looks like castle which surround with the lake in Germany called Vischering
Castle.
c)Religion
Major religion of Germany is Christian that around 65%-75% which is 29% are Catholics. How about
Muslim? This religion is only 4.4% which means minority religion. Other than that, 36% do not
identify them which any both religion mentioned.
d)Race
Germany, behind the United States and Saudi Arabia, is the host of the third largest number of foreign
migrants worldwide in the United Nations Population Fund.More than 16 million people (first and
second generations, including mixed ethnicity and ethnic German repatriates and their descendants)
are descended from immigrants. In western Germany and Berlin, 96.1 percent of those reside. About
7,000,000 of these 16,000,000 are foreign residents, identified as those without German citizenship.
e)Climate
Germany located at latitude north of the United States-Canadian border and closer to the Artic Circle
than to the equator. The climate is generally without constant periods of cold or heat which means
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climate is categorized by warm summers and mild cloudy winters. Rain falls throughout the year, with
much of Germany facing is extreme rainfall over the high summer months. Southwest has the highest
annual temperature.
The maritime and continental climates that dominate much of the world, the Alpine regions in the
dangerous south and to a lesser extent, the so-called mountain climate in some areas of the Central
Uplands. Because of higher altitudes and greater rainfall caused by air being moisture-laden as it lifts
over higher ground, this climate is expressed by lower temperatures.In the south (16 ° C -18 ° C),
January is the coldest month, while in the south it is -2 ° C. September is the month in which, because
outdoor weather is appropriate, Germany has the highest tourist numbers.
f)Natural Resources
Germany has a significant quantity of raw materials, including for the most part, construction
materials such as sand and gravel, broken or crushed stone, calcareous stone and marlstone, as well as
various industrial minerals such as rock salt, potassium salt, silica sand and fluorspar. Salt was mainly
contained in the Harz mountains.The second most important energy source is bituminous coal. While
extraction is expensive and often subsidised, the source is accessible from the Ruhr field and the
smaller Saar, Aachen, and Ibbenbüren fields. For economic purposes, the extraction of most metallic
minerals stopped in western Germany before unification. Germany also has limited oil and natural gas
reserves located in the north. Many oil products have been imported from other nations, such as
Russia. Gas from that country was also imported. Water, for all living things, is an essential source.
Germany, however, has an ongoing water shortage crisis.One source that is augmented by reservoirs
in the upland is water filtration on riverbanks. The Harz Mountains, for instance, provide water to
most of the North German Plain as far as Bremen, and the Ore Mountains supply the industrial area of
central Germany. In conclusion, Germany, as a car maker, is rich in metallic minerals such as steel,
zinc and aluminium for the body of the vehicle.
g)Political system
Germany is declared as Federal Republic of Germany, that consist of political parties,
judiciary and powerful regional and local government. ‘Federal’ refers to how that power is divided
nationally. The people assigns these powers to the parliament for the duration of a legislative period.
Same like common democracy, voting is the most important German political right, which are only
for citizens in Germany. Non-citizens not able to vote however there are exception where EU
nationals can vote in local and European elections. The voting age in Germany is up to 18 (16 for
local elections). The elections take place every 4 years and elect representatives to the Bundestag
(essentially the national assembly).
In the political system, the Bundesrat and the Bundestag are two major institutions which
control the German political scene, and they certainly help to understand how different they are. The
Bundesrat is the second chamber where its 69 members are not elected. They are proposed by regional
governments and tend to reflect the national vote count of the major parties. Completely elected and
much stronger is the Bundestag. Bundestag members form German legislatures, enact regulations,
prepare budgets and vote on foreign policy issues such as declarations of war. The President serves as
the Head of State, who is the constitution's political figurehead and protector. Presidents are not
elected, but are chosen by a committee of Bundestag representativesThere are qualifications to be a
president and some of them must be over 40 years of age, serving a maximum of two five-year terms.
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h) Government policies
i. According from the news, the contradictions of inexperienced insurance policies to restrict
C02 emissions show that Germany are strictly to practice burning of Biomass to reduce C02
emission and thus Climate Change. The primary government actions to limit C02 emissions have
been mandate a change in the fuels used to generate electrical power. They would replace to Wind
and Solar power as well as Biomass and Biofuels instead of using of fossils fuels to reduce C02
emission. There are policy of promoting Biomass
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3.a) Country’s economic practices
In Europe, Germany is the top economic force and the fourth worldwide. The country posted
the lowest growth rate since the Eurozone crisis in 2019, according to the IMF, with GDP rising by
just 0.6 percent, compared to 1.5 percent the previous year. This was because, along with political
instability and structural changes in the automotive industry, the fall in global demand for capital
goods and the uncertainty around the Brexit process that affected Germany's export-oriented economy
is due to the fall in global demand for capital goods. Because of the outbreak of COVID-19, according
to the revised IMF projections of 14 April 2020, GDP growth is projected to fall to -7% in 2020 and
to hit 5.2% in 2021, subject to a post-pandemic global economic recovery. In 2019, the debt-to-GDP
ratio in Germany is expected to have slipped below the Maastricht criteria for the first time in 18
years, at 58.6 percent.The country is set to sustain a budget surplus at 0.9% of GDP this year, despite
a weakening growth outlook, in the midst of a sharp rise in tax revenues, decreasing debt servicing
costs and modest government spending. The IMF expects a budget surplus of 1% in 2020 and 0.7% in
2021, although the European Commission's projection is lower (0.6% and 0.2% respectively).The
government is facing increasing calls, both at domestic and international level, to spend more on
investment to support the economy, with growing concerns about a global downturn; however the
2020 budget is set to continue the 'black zero' policy, meaning that no new debts will be made for the
seventh year in a row. According to the IMF's new World Economic Outlook (14 April 2020),
inflation, at 1.3 percent in 2019, could decrease to 0.3 percent in 2020 and rise to 1.2 percent in 2021.
Exports are forecast to increase dramatically over the course of 2020 by the Bundesbank (German
central bank), although domestic demand should not increase as dynamically as in previous years due
to a slowdown in real disposable income due to much slower growth in jobs.In 2019, amid weak
economic growth, the German labour market showed a strong result, dropping to 3.2 percent from 3.4
percent the previous year with the overwhelming majority of newly generated employment due to
social security contributions.
Despite the negative economic effects of the COVID-19 pandemic (3.9 percent in 2020 and
3.5 percent in 2021, according to the IMF), the unemployment rate should stay stable in the coming
years. Germany is among the world's wealthiest countries (World Bank) with a GDP per capita (PPP)
of USD 53,735. Nonetheless, around 18.7% of the country's population is at risk of poverty or social
exclusion, according to Destatis data (2018, most recent data available).
b)Three major economic
Germany has a mixed economy that enables consumer goods and business services to make a
free market economy possible. However, in these areas, government enacts regulations to protect their
citizens. In defence, Germany has a command economy that allows those with higher revenues to pay
more taxes. The government provides insurance for health care and education.
The largest economy is the manufacturing sector, which accounts for 26.8% of GDP and hires
26.8% of the German workforce. The automotive industry is the largest sector in the country, but
Germany also maintains other specialist industries, such as mechanical engineering, electrical and
electronic equipment and chemical products.there are famous brand of car that manufactured by
Germany such as Audi, Mercedes-Benz, Audi and Porsche. Also, Adidas and Faber Castell are the
brand that are popular in Malaysia also manufactured in Germany. In addition,industrial products
comprise much of Germany's visible exports. In many industries and in many markets worldwide,
German companies are leading. For example, this refers to so-called green technology, i.e. goods in
the environmental and climate protection fields. The German economy has a high share of the global
market in the burgeoning renewable energy sector, which includes photovoltaics, wind power and
highly efficient power plant technology.Germany has an agricultural sector as well, but it has been
limited. Milk, pork, sugar beets, potatoes, wheat, barley and cereal are the major agricultural products.
Mostly, the farmer doing business alone or with their family. From region to region, agricultural
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products differ. Cereals and sugar beets are grown in the flat terrain of northern Germany, and
especially in the eastern portions. Elsewhere, farmers cultivate tomatoes, milk, pork or beef on more
hilly terrain, and even on mountainous land. Nearly all major cities are surrounded by fruit orchards
and vegetable farms. Vineyards are covered by river valleys along the Rhine and the Main in southern
and western Germany.Vineyards are covered by river valleys along the Rhine and the Main in
southern and western Germany. German beer is world-renowned and is made in Bavaria
predominantly, though not exclusively. Germany has a high level of exports of agricultural products:
in 1997, the total amount of its exports was DM42 billion. Agricultural imports hit DM72 billion,
making Germany the largest importer of agricultural products in the world.
Lastly, Germany's service sector is the leading employer, which can surpass 72 percent of the
workforce and contributes to 62.4 percent of the country's GDP. The growth of the sector in recent
years has mainly been driven by strong demand for business-related services and the introduction of
new technology, leading to the development of entirely new divisions in the tertiary sector.A dense
network of small and medium-sized businesses, often very accessible to the outside community, relies
heavily on the German economic model. 61 percent of people employed in Germany work in small
and medium-sized businesses, according to Destatis.
c)Global economic arrangement
Germany has been participated and has been a member of World Trade Centre(WTO) since 1
January 1995. Other than that, Germany has been a member of the General Agreement on Tariffs and
Trade (GATT) since 1 October 1951. Germany also a member State of the European Union. It is
important as Germany are involved in the industry trade so the country plays an important role in
world trade, in particular in among industrialised countries. For example, cars that produce in Japan
and find their customers in Germany. So this show the product differentiation and verifying
customer’s preferences.
More exchange, in addition, makes manufacturing more cost-effective by specialisation and
economies of scale. Indeed the GATT and WTO have the purpose of providing several unilateral
trade agreements in which developed and emerging countries offer preferential access to developing
countries. Free trade, however does not apply to any nation and has trade without laws. It commits
countries in trade agreements to those laws. The modern trade agreement also contains strong chapters
on labour and environmental sustainability, procedures for dispute resolution, and countries may also
re-implement trade barriers. Over time, the content of trade deals has changed. For example, the free
trade agreements between the European Union (EU) and Mexico and Chile, signed in the late 1990s,
centred mostly on tariff dismantling. For example, the European Union's (EU) free trade agreements
with Mexico and Chile, signed in the late 1990s, centred mainly on the elimination of tariffs. Newer
trade agreements, such as those between the EU and South Korea, Vietnam, Singapore, Canada and
Japan, are also included in the so-called WTO+ zones.These are issues that have not yet been
discussed, or only to a limited extent, at the multilateral level, including competition rules, intellectual
property protection, government procurement, procurement, etc.
In addition, a multitude of investment treaties have been ratified by EU Member States. They
fund security against political risks, such as discrimination and expropriation, for foreign investors.
These agreements have usually been concluded in the past by two states (some of which are still
plurilateral) and negotiated separately from trade agreements.In 2009, with the Lisbon Treaty, the EU
acquired the power to sign certain treaties for the EU as a whole and made them part of free trade
agreements (e.g. with Canada). The European Court of Justice subsequently explained that investor-
state arbitration proceedings do not fall under the exclusive jurisdiction of the EU and that all Member
States must first ratify the applicable agreements before they come into force.Wherever possible, the
EU has begun to separate investment protection from free trade agreements, so that free trade
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agreements are not overcome by lengthy processes for the approval of chapters on investment
protection.
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4) Commission approves German nation-wide scheme to support deployment of Gigabit
networks in Germany
This article tittle of State aid: Commission approves German nation-wide scheme to support
deployment of Gigabit networks in Germanyby an official website of the European Uniondiscussed
about new technology that will introduce by Germany which is broadband networks offering Gigabit
speeds in Germany. The goals to support the network to customers in areas, where the market does
not provide them, in line with the EU broadband connectivity objectives. Not only that, with the very
speed connectivity it will helps areas where in need the connectivity, while also will fostering
investment from private sectors. From the economic point of view, it will create more competitive and
sustainable market economy. To achieve these goals, The European Commission has approved, under
EU State aid rules to support this project with overall budget up to €12 billion.
As we know, world today is moving faster in development especially in technology. Just
about a few years ago, the introduction of 4G network, then on September 2019, there is debut in 5G
networks. However, the first country that use this new network is not Germany even though Germany
is a top development country. Using of this network surely needs a lot of cost. Four cell phone
providers provided 5G licences in 2019 and paid the federal government a total of EUR 6.6 billion ($
7.4 billion), money that is missing for network development. (Becker, 2020).
There is a question in my mind, is it the budget enough to support as only four mobile has
used this 5G networks costed €6.6 billion while their budget around €12 billion? This article
explained, Germany will not use the network are not thorough of all areas but going to step by step.
First step, Germany will focus to the household that have speeds of less than 100 Megabit per second.
Once it succeeds, it will contribute to a reduction of the digital device between rural and urban areas
in Germany. Second step, that will begin in 2023, support will also be available for the deployment of
Gigabit infrastructure for households that already have access to speeds of 100 Mbps, but not to a
network which already provides very high speeds up to 1 Gigabit. The country target that in 2025, the
network will available to all citizens.
How can the two step will sustain economic growth in Germany? I am so amazed with their
government that look far toward the household that use this network. Firstly, it will consider shortage
of current capacity of construction in Germany and to avoid the risk of potential construction price
increases so that will make private investment become more profitable because using high capacity of
network. The government encouranged public investment in the areas that was targeted by the
Communication. Not to worry, the results also will support the repayment of those recent investments.
In conclusion, Germany take this Gigabits technology moving slowly but surely to give the
advantage to all of their residents. Their plans are so impressive as it is a long term investment to the
country to make sure the sustainable economy.
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5. As an economic engine and a beacon of political stability for the European Union, Germany
is well established. This balanced, well-developed nation has its own flourishing economy, plenty of
skilled workers, and outstanding social infrastructure. I want to take this opportunity to perform a
SWOT analysis of Germany, describing its strengths, limitations, opportunities and challenges for
international business.
Strengths
Strong Economy
Germany is renowned for its efficient economy, including all level sectors. Nothing tells the
strong economy of Germany, lower than many other Central European nations, than its current
unemployment rate only 3 percent. In particular, Germany is noted for its share in the automobile,
chemical and metals industries, all of which are currently in high demand. Overall, it boasts a
significant number of foreign exports and has a stable financial climate.
Political Stability
A highly stable political situation also exists in the country. Germany profits from some of the
most famous labour, travel and trade policies in the world as a member of the European Union.
Internally, there is considerably less corruption in the German political system than in other European
states, and its modern democratic approach to decision-making is generally accepted. German
Chancellor Angela Merkel is an exceptional negotiator who is well thought-out in Germany and the
European Union as a whole.
The Strong Infrastructure
Germany has a wonderful infrastructure in every sense of the world as well. To begin with the
German travel infrastructure includes international travel hubs such as Berlin, Frankfurt and Munich.
What's more, the nation is incredibly well connected with a range of trains, buses and trams. In
addition to the travel infrastructure, Germany has numerous cell towers, high-speed internet
connections, and reliable electricity networks. Other services, such as laboratories, and landfills
Competent Workers
The German workforce is seen as incredibly smart and hard-working. German workers are
known for their attention to detail in both the manufacturing and service-based industries. This not
only improves business efficiency significantly (hence the strong economy), but also gives a
reputation for quality to German goods and services. Moreover, Germany has highly qualified
academics, engineers, and even mathematicians, demonstrating their prowess in the area of STEM.
Positive Reputation
Germany has an extremely positive reputation for the nation itself and for what it makes, as
touched on above. In the European Union, where it is a major player in the overall political and
economic stability of the group, the nation itself is especially esteemed. Meanwhile, in many
countries, including large parts of Europe, German goods are known as some of the world's finest. To
see the justification for this, simply look at the automotive industry.The favourites of many quality-
conscious buyers around the world are German car brands such as Volkswagen, Audi, Porsche,
BMW, and Mercedes-Benz.
Weaknesses
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High Labor Costs
There are a few downsides to having such a well-developed economy. In Germany, most
importantly, labour costs are extremely high. Also unskilled labourers command high hourly rates,
such as supermarket attendants. Germany's earning standards are on par with other highly established
European nations such as the United Kingdom, the Netherlands and France, with a minimum wage of
about 1500 Euros per month. Such high labour costs can pose a major problem for smaller companies
and start-ups, and could thwart new business growth.
Opportunities
Europe leader
Without considering Brexit, it's difficult to address every European country's future. Brexit
could be more of an opportunity than a challenge in Germany's case. Until now for many European
organisations especially banks, the United Kingdom was a foundation. A huge chunk of the Europe-
wide financial and legal sector will be searching for a new home as the UK is likely to exit the
European Union. While France and Belgium are two famous new business candidates, so is Germany!
If Germany is able to capture this opportunity, the country as a whole will most likely be faced with
new revenue sources.
Renewable Energy
For Germany, another potential lies in the rising renewable energy industry. It is a fantastic
candidate for experimenting with and adopting renewable energy, given the country's skilled labour
force and strong all-round growth. Although one choice for the nation is the development of
renewable energy technology, it is the implementation of that technology that is much more
interesting. Germany would be able to minimise its reliance on fossil fuels and therefore reduce costs
and save the world by staying at the cutting edge of sustainable energy production! Unfortunately, it
seems that Germany's high industrial production will allow Scandinavia's smaller, more
environmentally-conscious countries to capture this market first.
Threats
Germany, as a member of the European Union, is subject to all political and economic
changes happening within the region. Although the European Union is in good standing at the
moment, there is growing proof that not everyone believes so. Several other Western European
countries have considered similar moves following the United Kingdom's vote to exit the European
Union. If political or economic decisions like the one mentioned above were to be made by other
European states, it could have disastrous implications for the remaining members.
Conclusion
In conclusion, Germany is the great country which gives a lot of opportunities to international
business to deal with. After studying about Germany, I realized that Germany has many natural
resources that hold their economic growth. As the country became a top economy in Europe, it gives a
pressure to Germany to always produce the best quality in their products and services. Their product
also prioritizes a green products which also want to preserve our earth for the better future to the next
generation. Germany also has a unique infrastructure and best scenery to all people to enjoy it.
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