The German Business Environment
Germany is a constitutional state. Foreign investors benefit from the same treatment as that reserved for the citizens in legal issues. In surveying the legal stability and foreign investors, German comes in second after Great Britain in providing a good legal environment. The legal environment provides good investment opportunity for foreign companies and focused on benefiting investment and entrepreneurial activity in Germany. The business environment works on the basis of competition. However, the competitive environment needs some protection from unfair practices (Hamilton & Webster, 2015). Therefore the federal government has the responsivity of controlling unfair market behavior. Therefore the law today consists of the adjustment and amendment of the current law to reflect the various social developments. The German legal environment works on the basis of a constitution but is also influenced by the international and European law. The laws are passed by the Bundestag and then they are enacted by the federal government.
One thing that is unique in German is that the government has a keen focus on enhancing fair competition. The act against unfair competition prohibits misleading advertisement and also controls comparative and direct marketing activities. One is free to make a legal claim against unfair behavior by a competitor. Besides, patents and trademarks enjoy protection from the authority.
There is no special consideration for foreign direct investment. However the law makes it easy for any foreign direct investors. One needs to understand the custom taxes, the quality and environment standards, competition rules and the trademark regulations. Generally, the importer has the responsibility of clearing the items in order to have the items circulating in the Germany local market. The only concern that one should have is to understanding the requirements for getting into the market but only for the purposes of the pricing. Therefore, it might be quite easier for a foreign investor to get into the German market. However, one thing that the county considers is the country of origin in the good that are imported to the country.
Opportunities for American investors
As mentioned, one that seeks to invest in Germany might be considered based on the countries that they are coming from. While the legal environment offers the same opportunities for everyone that seeks to invest in the nation, the idea of the nation of origin might give investors from the US an upper hand when trying to import things to the country. The German market remains to be attractive in numerous sectors and is one of the essential elements of any export strategy to Europe. Among the things that American companies can enjoy from the investing in Germany include the high productivity levels, high skilled labor, first class infrastructure and quality engineering (Rose-Ackerman & Tobin, 2005). However the countries policies tend to offer some formal barriers to investor from the US. An investor would not only have to deal with the EU barriers but also face the EU common agricultural policy and Germany restriction biotech agricultural products might be a challenge to US products. Therefore one might experience a fee challenge when venturing to this market.
One thing that an investor should understand when investing in Germany is the local policies that guide the biotech products. Therefore investors seeking to invest in the country should avoid dealing with such products. The focus could be more on the technology and other industries.
Besides, one that is trying to invest in the nation should take advantage of the high population. With the huge population and a free market economy firms might invest with much ease in the nation. The country has one of the best investment environments in the entire of Europe.
Rose-Ackerman, S., & Tobin, J. (2005). Foreign direct investment and the business environment in developing countries: The impact of bilateral investment treaties.
Hamilton, L., & Webster, P. (2015). The international business environment. Oxford University Press, USA. ~~~For this or similar assignment papers~~~
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