This research presents the results of a country study of Germany. The purpose of the country study is to provide information to support decisions related to the establishment of a new automobile manufacturing plant in Germany. Topical areas addressed in this country study are market, imports and exports, inflation, interest rates and credit, labor wages, strength of organized labor, management characteristics, infrastructure, taxes, facilities availability, distribution system, business services availability, business associations, and competition.
Germany is a nation of 80.3 million people. Per capita gross national product is US24,650, gross domestic product is US$1.8 trillion. Growth domestic product growth in Germany is compared with that in three other European Community countries-- France, Italy, and the United Kingdom--in Exhibit 1 which may be found on the following page.
Germany's international trade balance is traditionally in the black. Exports typically exceed imports by approximately five-percent. Germany's principal export and import partners rank as follows:
German monetary and fiscal policy emphasizes the control of inflationary pressures. Consumer prices in Germany have risen by an average of approximately three-percent over the past five years. The inflation rate in Germany is expected to fall below two-percent per year in 1995.
Germany has pursued a monetary policy of that emphasized the control of inflation, relatively high interest rates, and a strong mark, often to the complete dismay of the country's European Community partners. Monetary policy emphasized interest rates and money supply management. Interest rates (as reflected in the prime commercial rate) were stable at 11 percent from November 1992 through February 1993. Interest rates dropped to 10.5 percent in March 1993, to 10.25 percent in April 1993, to 10 percent in May 1993, to 9.5 percent in August 1993...