RAJEEV GANDHI COLLEGE OF MANAGEMENT STUDIES

INTERNATIONAL BUSINESS
OVERALL ANALYSIS OF GERMANY
 • GROUP MEMBERS:-

NAME ROLL NO.

Dhiraj Jena 20
Durvesh Patil 23
Pragya Upadhyay 54
Rashmi Mishra 68
Rasika Bhat 69
Sejal Chaturvedi 80
Vishwajit More 112
 Germany
• Germany is a Western European country with a landscape of forests,
rivers, mountain ranges and North Sea beaches.
• Munich is known for its Oktoberfest and beer halls, including the
16th-century Hofbräuhaus. Frankfurt, with its skyscrapers, houses the
European Central Bank.
• Economic complexity index Ranking is 4
 Demography
• Population: 8.31 crores (2021)
• GNI per capita: 59,680 PPP dollars (2021)
• Fertility rate: 1.53 births per woman (2020)
• Unemployment rate: 3.3% (Dec 2019)
• Population growth rate: -0.0% annual change (2021)
• Life expectancy: 80.94 years (2020) Official language: German
 Country’s risk analysis:
PESTEL
• Political:
• Political environment in Germany is a federal, parliamentary, and
representative democratic republic.
• While the President is the head of state of Germany, the Chancellor is
the head of government and exercises executive authority through
the Cabinet.
 Economic Factors:

• The next element to address in the PESTEL analysis of Germany

(Germany country profile) is the economic environment. Germany is
the 4th largest economy in the world (Focus Economics, 2021).
• Germany has comparatively low raw materials.
• The service sector contributes 70% of the GDP.
• Industry contributes 29.1% while agriculture backs 0.9%. Most
products are in engineering
 Social environment in Germany

• Germany is one of the best countries to live in the world in terms of

wealth, education, health and quality of life.
• With a total population over 84 million, it is the second most
populous country in Europe (Worldometer, 2021).
• The life expectancy for men is 78 years while 83 years for women.
 Technological environment in Germany:

• Germany has a proud history of research and innovation.

• While there is no problem in such positions, many people are perhaps
not aware that Germany is the 5th best technologically advanced
country in the world.
• It is a leader in a number of markets e.g. medicine, scientific research,
infrastructure, military technology, engineering, and design.
Environmental factors in Germany
• Tourism is one of the major industries in Germany and
contributes around 4.5% to the national GDP. 
• In fact, Germany is one of the top tourist destinations in the
world.
• It received around 39.4 visitors in 2019 (Statista, 2021). German
history, culture, scenic beauty, historic cities and towns, small
villages, grand palaces, etc.
 Legal environment in Germany:

• The last element to address in the PESTEL analysis of Germany is the

legal landscape of the country.
• In the eyes of the German law, there are usually no differences
between German nationals and foreign nationals concerning
investments or the establishment of companies.
• In fact, the German government promotes establishment of all types
of business.
 Exports From Germany
PRODUCTS AMT

Machinery including computers US$268.6 billion

Vehicles $246 billion

Electrical machinery, equipment $176.4 billion 

Pharmaceuticals $118 billion 

Optical, technical, medical apparatus  $83.8 billion 

Mineral fuels including oil $43.3 billion 

 Imports In Germany
PARTICULARS AMT

Natural Gas in Gaseous State US $6082 million

Crude Petroleum Oil US $5,251 million

Smartphones for Wireless Networks US $930 million

Aircraft , spacecraft US $27.75 Billion

Iron and Steel US $32.82 Billion

Furniture US $19.46 Billion

 Product space
• The Product Space helps to define paths to diversify a country's
economy based on the connectedness of its knowhow.
• Our research finds that countries tend to diversify by moving into
nearby and related products or into those that require similar
knowhow to build on existing capabilities.
• For example, countries that produce textiles (green) are highly likely
to be able to produce other textiles, but share few links to the
knowhow required to produce machinery (blue).
 Sectors favorable currently in Germany
• Manufacturing Auto Spare Parts Manufacturing is the priority sector
of the German economy and the automotive industry tops the list of
industries. Therefore manufacturing auto spare parts can be a very
profitable business for you in Germany. Starting any manufacturing
unit near the industrial areas and have good networking with the
industrial sector.