Imports, Exports, and what Germany is known for

Germany has become a knowledge-driven economy with a strong tertiary sector. Yet, industrial enterprises play a key role in the country's economic growth. As a result, Germany has the world's largest industrial sector.

Although large local companies have a strong position in the industrial sector, more than 33 percent of the industrial turnover and 98 percent of all German industrial activity is generated by small and medium sized enterprises (SMEs - companies with 500 employees or less). These SMEs employ over 20 million people that yield a turnover of more than 1.3 trillion Euros per year.

Imports



Germany plays an important role within the European steel and metal processing sector. With a demand volume of about 18 million tons, it is the largest customer of the European steel industry. From the primary products of steel flats and rods, it produces innumerable intermediate and finished products. As a major processing nation, Germany relies basically on imports to feed the metals industry. Regarding metal raw materials, Germany depends 100% on imports.

Exports



The German industry is very diversified and has a leadership position in many sectors worldwide. The automobile Industry, the mechanical engineering sector and the chemical industry are leading producing and exporting industries. Innovative sectors like renewable energy, nano- and biotechnology have been growing steadily in the past years boosting the country's competitive edge and consolidating Germany's presence and impact in the world economy.

The German Mechanical Engineering Industry is the second largest industry in the country and employs more people than any other industrial sector. About 6,000 companies and 975,000 employees ensure the industry's leadership in exports.


A Highly Developed Infrastructure

A highly developed infrastructure facilitates doing business and supports Germany's integration into the world market. The German railway network is one of the densest in the world and motorways feature more than 12,000 kilometers.



A number of international airports establish a basis for an excellent domestic interconnection as well as to Europe and the world. In particular, the airports of Frankfurt and Munich, rank among the top ten hubs in the European Union.


Destination Germany - Tourism

Germany is becoming increasingly popular as a travel destination: With almost 55 million overnights by foreign guests in 2007, the German National Tourist Board recorded a notable 3- percent increase on the record achieved during 2006, the World Cup year. Berlin, Munich, Frankfurt and Cologne are the most popular cities with international visitors. Most come from other European countries, the USA and Asia. With regard to individual states, Bavaria, North Rhine-Westphalia and Baden-Württemberg are the preferred destinations.

In addition to historical sights, top-quality concert series, art exhibitions, theater performances as well as major international sports events, not to mention street festivals and atmospheric Christmas markets are just a few of the attractions that bring the visitors flocking. The Germans love to celebrate, and never miss an opportunity to do so. Many festivals such as Munich’s renowned Oktoberfest, Christopher Street Day in Cologne, the Carnival of the Cultures in Berlin, Fastnacht in Mainz and Carnival in Cologne have long become an international synonym for high spirits and a cosmopolitan atmosphere.

Whereas most foreign visitors are drawn to the big cities, Germans themselves tend to visit smaller places and rural regions in their home country: The coasts of the North and Baltic Seas, the Black Forest and Lake Constance are the most popular vacation destinations. Germany boasts no less than 14 National parks, 95 nature parks and 13 biosphere reserves. However, coastlines, lakes, as well as low and high mountain ranges are all becoming increasingly important as a sort of open-air health club. There are all sorts of opportunities available: There are as many as nine long distance trails stretching for 9,700 kilometers throughout the country and a total of 190,000 kilometers of signposted walks. And for cyclists there are 50,000 kilometers of track on which to discover the country

Political, Legal, and Regulatory Environments

Political Environment

The Federal Republic of Germany is a democratic, federal and social constitutional state. Together with the basic rights, these principles form the inviolable core of the constitution, adherence to which is guarded over by the Federal Constitutional Court. It fast became a successful model and a prime export: After the Second World War, the Basic Law provided freedom and stability – albeit initially only for the Germans in the West of the nation that remained divided until 1990. The primacy of the basic rights, the definition of the principles of a democratic and social federal state, and the foundation of a supreme court that watches over adherence to the constitution – these are the basic cornerstones of German democracy.




Legal Environment

In Germany, the administration of justice is divided into five branches: ordinary, labor, administrative, social and financial courts. In a normal case there are three higher tiers that can re-assess court decisions. The plaintiffs and the accused can appeal against a court ruling. Thereupon the litigation goes before a “higher” court and a ruling is handed down. Not until the third level has been reached is there no longer any right of appeal and the litigation thus comes to an end.

The law of the Federal Republic of Germany applies to virtually all aspects of life; as a result, legislation today consists of adjustments and amendments to existing laws to take social developments into account and to cope with social problems. Germany's legal system has been shaped by constitutional law but is also influenced by the law of the European Union and by international law. The body of federal laws now encompasses approximately 1,900 acts and 3,000 statutory instruments. Laws are passed by the Bundestag, and decrees on the basis of laws are enacted by the Federal government. State law is mainly concerned with such matters as schools and universities, the press, radio and television, as well as the police and local government.

In surveys on political and legal stability, foreign investors put Germany second only to Great Britain. This legal stability attracts foreign companies and is to the benefit of investments and entrepreneurial activity in Germany.

Regulatory Environment

Business-life in Germany is based on the principle of competition. Still, the competitive market environment needs to be protected against unfair practices.
To control unfair market behavior is within the responsibility of the Federal Cartel Office (Bundeskartellamt) in Bonn. Fair competition is also safeguarded by the Act Against Unfair Competition (Gesetz gegen unlauteren Wettbewerb, UWG). It prohibits explicitly misleading advertising and governs comparative advertising as well as direct marketing activities. It provides the basis for legal claims against unfair behaviour of competitors.

Trademarks and patents enjoy strong protection in Germany. For sales into Germany, this means a two-fold challenge. First, trademarks or other intellectual property used in or on the merchandise must not infringe older rights that have already been established in the German market. Second, any intellectual property related to the merchandise can be legally protected against counterfeiting by means of registration. For Germany, the German Patent- and Trademark Office (Deutsches Patent- und Markenamt) is in charge of these registrations.

When exporting to Germany, various aspects have to be considered: Customs and taxes, quality and environmental standards, trademark and competition rules are just a few of them.
In general, the importer is responsible for clearing the items to put the goods in circulation in Germany. Exporters need to be informed on prerequisites of penetrating the German market, if only for pricing purposes. In reference to customs duties for goods which are exported to Germany, the goods' country of origin is of utmost importance.

Imported goods must be accompanied by a customs declaration, which has to be submitted in writing, and an invoice in duplicate. Normally the German importer files this declaration. The commercial invoice must show the country of purchase and the country of origin of the goods.

Like most of the member states of the European Union, Germany adheres to the metric standard. Quantities and qualities of goods must therefore be quoted in metric units or units derived from them.

As consumer protection and information are of fundamental importance, there are precise regulations on labelling products, especially for food, which are bound for the Single European Market. For safety aspects of several kinds of products, Germany has established the Federal Institute of Risk Assessment.

Social and Cultural Environment

The concept of Culture can be defined in many aspects like history and literature, art galleries and museums, food or music and education. The way they eat, speak, spend free time, work, dress, learn and express emotions. Culture is the patterns of behavior and ways of thinking that people living in a particular social group learn and create.

Sprache (Language):

German is used as the official language of Germany and of Austria. Historically, German falls into three main periods: Old German (c. 750-c. 1050); Middle German (c.1050- c.1500); and Modern German (c.1500 to the present). The earliest existing records in German date back to about 750. In this first period, local dialects were used in writing, and there was no standard language. In the middle period a relatively uniform written language developed in government after the various chancelleries of the Holy Roman Empire began, in the 14th cent., to use a combination of certain dialects of Middle High German in place of the Latin that until then had dominated official writings.

German is one of the most important cultural languages. It was spoken and written by Goethe, Mozart, Beethoven, Freud, Klimt and Einstein, and numerous other great artists and scientists. Many of the European culture have been written in the German language.

• Literature (Goethe, Schiller, Thomas Mann, Kafka)
• Classical music (Bach, Beethoven, Mozart)
• Art (Kollwitz, Durer, Klee, Kaninsky)
• Psychology (Freud, Jung)
• Philosophy (Kant, Schopenhauer, Nietzsche, Benjamin, Adorno)
• Science (Einstein, Kepler, Runtgen, Planck, Virchow)

Religion:

The German government has limited responsibilities for culture, which is devolved to the states of Germany, called Lunder. Approximately 80% of the German population belong to a Christian denomination, of whom roughly half are Roman Catholic and half are Protestant that they have other Religious

Food:

German food varies from region to region, but concentrates on meat (especially sausage) and varieties of sweet dessert and and Stollen (a fruit cake).



Germans also are famous for rye bread. Germany also produces a large quantity of beer, and (mostly white) wine, particularly Riesling, but also Muller-Thurgau and other varieties.

German Life:

Germans are not, contrary to stereotypes, stubborn. They are just argumentative. Things have to be logical to them or they will argue about it until they find the logic. Now that logic does not have to be based in physics or math, but it does have to fit with their view of what is the correct way to live. Germans are passionate about lifestyle and politics an expensive combination from a societal perspective.

Business Etiquette in Germany:

It is best to make appointments for meetings well in advance – at least a week or two’s notice is needed for meetings arranged by phone, and at least a month’s notice for meetings arranged by post. Make sure you arrive on time for meetings, and don’t forget to call your contact in the organization if you’re going to be late, giving a plausible excuse.

In large corporations and banks, Germans tend to dress formally in dark, conservative suits, and it’s best to follow their example when doing business with them.

When meeting for the first time, it is usual for the person highest in a company’s hierarchy to introduce their colleagues. However if you go to work in a German office, you will probably have to introduce yourself to your new colleagues.

During meetings it is best to avoid lapsing into informality or showing emotion, and cracking jokes is a bad idea – they have their place in informal get-togethers after work, but not in the office. Also keep small talk to a minimum, and make sure you are well prepared for meetings, and that you stick to the agenda. If you don’t speak German, it can be helpful to have an interpreter, even though your German counterparts will probably speak English. This will avoid misunderstandings. It is also good practice to have your company literature translated into German and to bring this to meetings.

Economic Environment

Economy

Germany is Europe's largest economy. It is an affluent and technologically powerful economy that produces almost one fifth of the European Union's (EU) total GDP. The economy follows free market principles with a significant degree of government regulation and generous social welfare programs and protections. The state plays a role in the economy, providing subsidies to certain sectors and by retaining ownership of some segments of the economy, while promoting competition and free enterprise.

With the highest gross domestic product and the largest number of inhabitants in the European Union, it is the most important market in Europe. In global trading of goods and services, the Federal Republic of Germany is in second place after the USA.

Economic life in Germany is more international in nature than in most other major industrial nations. One in three euros in Germany is generated through exports; nearly one in four jobs depends on exports.

Germany’s great competitive strength internationally is illustrated most clearly in its high level of and rapidly growing merchandise exports. The rise in direct investments in Germany by international companies also underlines the good position of the German economy.


Industrialization

German industry is very diversified and in many sectors it is a global leader.

The most important branch of the economic activity in Germany, with traditionally a very high share of total economic production, is industry. The 49,000 German industrial undertakings employ nearly 6.4 million staff. Together they generate turnover of more than 1.3 trillion euros. 98 per cent of all German industrial undertakings are small or medium-sized companies (SMEs) with 500 or fewer staff.



Germany is the world’s third largest automobile producer, with more than 70 percent of vehicles produced here intended for export. Machine and plant construction, in which most German industrial undertakings are involved, is also of outstanding international importance.

Germany is also a world leader in the chemical industry. Furthermore, among Germany’s most innovative sectors with above average growth rates are those of technologies for the use of renewable energies as well as information technology and bio-technology.

GERMANY
Located in the "heart of Europe"

Geography

Area: 357,000 sq. km. (137,821 sq. mi.); about the size of Montana.
Cities: Capital--Berlin (population about 3.4 million). Other cities--Hamburg (1.7 million), Munich (1.2 million), Cologne (964,000), Frankfurt (644,000), Essen (603,000), Dortmund (592,000), Stuttgart (582,000), Dusseldorf (568,000), Bremen (543,000), Hanover (516,000).

Climate:
temperate and marine; cool, cloudy, wet winters and summers; occasional warm, tropical foehn wind; high relative humidity

Terrain:
lowlands in north, uplands in center, Bavarian Alps in south

Natural resources:
iron ore, coal, potash, timber, lignite, uranium, copper, natural gas, salt, nickel

Agriculture
corn, wheat, potatoes, sugar, beets, barley, hops, viticulture, forestry, fisheries.

Land use:
arable land: 34%
permanent crops: 1%
meadows and pastures: 16%
forest and woodland: 30%
other: 19%

Government

Type: Federal republic.
Founded: 1949 (Basic Law, i.e., Constitution, promulgated on May 23, 1949). On October 3, 1990, the Federal Republic of Germany and the German Democratic Republic unified in accordance with Article 23 of the F.R.G. Basic Law.
Branches: Executive--president (titular chief of state), chancellor (executive head of government); legislative--bicameral parliament; judicial--independent, Federal Constitutional Court.
Administrative divisions: 16 Laender (states).
Major political parties: Social Democratic Party (SPD); Christian Democratic Union (CDU); Christian Social Union (CSU); Alliance 90/Greens; Free Democratic Party (FDP); Left Party (LP).
Suffrage: Universal at 18.

Economy

Germany is the world's third-largest economy and the largest in Europe. Germans often describe their economic system as a "social market economy." The German Government provides an extensive array of social services. The state intervenes in the economy by providing subsidies to selected sectors and by owning some segments of the economy, while promoting competition and free enterprise.

GDP (2007 nom.): $3.22 trillion.

Annual growth rate: (2008 est.) 1.7%.
Per capita GDP (2007 nom.): $40,415.
Inflation rate:) 2.2%; (2008 est.) 3%.
Unemployment rate: (2008 est.) 7.8%.


Industry (29.1% of GDP): Types--car-making; mechanical, electrical, and precision engineering; chemicals; environmental technology; optics; medical technology; biotech and genetic engineering; nanotechnology; aerospace; logistics.
Trade (2007 est.): Exports--$1.35 trillion: chemicals, motor vehicles, iron and steel products, manufactured goods, electrical products. Major markets--France, U.S., and U.K. Imports--$1.075 trillion: food, petroleum products, manufactured goods, electrical products, motor vehicles, apparel. Major suppliers--France, Netherlands, U.S.

People

Most inhabitants of Germany are ethnic German. There are, however, more than 7 million foreign residents, many of whom are the families and descendants of so-called "guest workers" (foreign workers, mostly from Turkey, invited to Germany in the 1950s and 1960s to fill labor shortages) who remained in Germany.

Germany has a sizable ethnic Turkish population. Germany is also a prime destination for political and economic refugees from many developing countries. An ethnic Danish minority lives in the north, and a small Slavic minority known as the Sorbs lives in eastern Germany. Due to restrictive German citizenship laws, most "foreigners" do not hold German citizenship even when born and raised in Germany. However, since the German government undertook citizenship and immigration law reforms in 2002, more foreign residents have had the ability to naturalize.

Germany's natural landscapes offer a wealth of options for an unforgettable holiday: long sandy beaches on the coasts and lake shores, enchanting lowland plains, extensive ranges of hills and the high peaks of the Alps. Whether you choose leisurely exploration, a spa or wellness break, or a sports activity on land, on water or in the air, you'll be amazed at what Germany has to offer.