Description

Executive Summary 

The Federal Republic of Germany is a European country that was split into East and Western Germany due to the second world war; however, the two states were united and has become West Germany as of the present day (Pier, 2020). The present political condition of Germany is unstable due to the lack of coalition and cooperation of Germany’s Chancellor, Social Democratic, and Christian Social Union. The unstable political condition had impacted the economic situation in Germany. Therefore, the decline in the economic growth rate is one of the factors and the decline in the demand of capital goods, as Germany is an export-oriented country, is another factor that led to the economic decline. In order to resolve the political situation of Germany, the government established a budget plan for the year 2020 known as “Schwarze Null” that focuses on the economic development in Germany. Furthermore, the import of electric vehicle parts or electric vehicles is highly recommended, as the rationale of the suggested product will be further outlined in the project’s report. One of the main risks associated with expansion of international companies’ businesses include the burden of taxes, as companies are required to pay taxes nine times and that will be further explained in detail in the project’s report. Another key risk is the shortage of skilled labor in Germany that resulted high competition among domestic and foreign companies. Despite the risks associated with performing trade in Germany, Germany is considered one of the largest economies among the European countries; the overall legal and macroeconomic structure and condition will serve to provide financial benefit for multinational companies. Thus, it is recommended for international companies to expand their businesses in Germany.

1.1 Political System and Structure 

Germany possess a Federal democracy political system that is equipped with reliable political parties, domestic governments, and an independent judiciary. The Federal democracy of Germany includes sixteen states; the authoritative power is distributed among the state governments and the Federal of Germany. The main political structure of Germany is divided into a Federal Council (Bundesrat) and Federal Assembly (Bundestag). Under the Federal level of the political system, the power is distributed among the legislative, executive, and the judiciary branches. At the executive branch, the Federal Chancellor, the president, is appointed to be the head of the state that has direct control on the Federal government and serves to select Federal Ministers (University of Wisconsin Madison, 2018). Furthermore, the Germany’s government is appointed to nominate a Federal President that participates in formal religious and public events. At the Judicial level of Germany’s Federal democracy requires the involvement and the interference of the courts of the state (Länder), federal courts, and Bundesverfassungsgericht (BverfG) court (University of Wisconsin Madison,2018). The Federal courts constitute of five main legal hierarchies, which are the Federal Administrative Court (Bundesverwaltungsgericht), Federal Court of Justice (Bundesgerichtshof), Federal Labor Court (Bundesarbeitsgericht), Federal Tax Court and the Federal Social Court (Bundesfinanzhof). On the other hand, the court of Länder has the power to provide guidance and direction for the appeals that are initiated by the states. The (BverfG) court comprises two panels; the first panel is appointed to settle cases that are associated with essential human rights. Inversely, the second panel serves to resolve constitutional disputes. Each panel under the (BverfG) court consists of eight judges