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Germany

Germany is a highly developed social market economy that is the largest in Europe. It has a population of over 80 million people and Berlin serves as its capital city. While the service sector contributes around 70% of GDP, Germany has a strong manufacturing base and is a top exporter, especially of machinery, vehicles, chemicals and other industrial goods. Germany has a skilled workforce and is known for its high-quality engineering and innovation in industries like automotive, machinery, chemicals and technology. The cultural values in Germany place importance on aspects like integrity, loyalty, hard work, rules and authority.

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0% found this document useful (0 votes)
250 views53 pages

Germany

Germany is a highly developed social market economy that is the largest in Europe. It has a population of over 80 million people and Berlin serves as its capital city. While the service sector contributes around 70% of GDP, Germany has a strong manufacturing base and is a top exporter, especially of machinery, vehicles, chemicals and other industrial goods. Germany has a skilled workforce and is known for its high-quality engineering and innovation in industries like automotive, machinery, chemicals and technology. The cultural values in Germany place importance on aspects like integrity, loyalty, hard work, rules and authority.

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himanshu sagar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BASIC INFORMATION YOU SHOULD KNOW

ABOUT GERMANY!
WORLDS 4TH LARGEST ECONOMY.
POPULATION: 80.8 MILLION
TOTAL AREA: 357,021 SQ. KM
CAPITAL: BERLIN
CURRENCY: EURO (1.00 EUR = USD 1.35)
LANGUAGE: GERMAN
MODERN INFRASTRUCTURE
WELL TRAINED EMPLOYEES
ETHNICITY: GERMAN 81%, OTHER EUROPEANS 7%, TURKISH
4%, ASIAN 2%, BLACK AFRICAN 1%, OTHERS 5%
RELIGIONS: PROTESTANT 34%, ROMAN CATHOLIC 34%,
MUSLIM 4%, JEWISH 0.1%, UNAFFILIATED OR OTHER 28%
ECONOMIC SECTORS OF GDP: SERVICES-68%,
MANUFACTURING AND TRADE-26%, CONSTRUCTION
INDUSTRY- 5%, AGRICULTURE- 1%.
POPULATION
TOTAL POPULATION IS 8,13,35,135
POPULATION
51.5

51

50.5

50

49.5 POPULATION

49

48.5

48
MALE FEMALE
POPULATION BY ETHICS

GERMAN TURKISH OTHER

Life expectancy is 81 years


Male-79 yrs
female-83yrs
GERMANY AS AN EDUCATION DESTINATION

NO TUITION FEES AT PUBLIC UNIVERSITIES IN GERMANY


NO TUITION FEES AT PUBLIC UNIVERSITIES IN GERMANY
INTERNATIONALLY RECOGNIZED DEGREES
STUDY PROGRAMS TAUGHT IN ENGLISH
GREAT JOB OPPORTUNITIES
(PORT, AIRCRAFT CONSTRUCTION)
STARTUPS
HIGH TECH

(MEDIA)

(FINANCE)
RHINELAND
(CHEMICAL, IT)

(AUTOMATIVE CONSTRUCTION & HIGH TECH)


Germany is the largest national economy in Europe. The economic model of Germany is
based on the concept of the social market economy.
The service sector contributes around 70% of the total GDP, industry 29.1%, and
agriculture 0.9%.
Germany is the third largest exporter in the world. The top 10 exports of Germany are
vehicles, machineries, chemical goods, electronic products, electrical equipment,
pharmaceuticals, transport equipment, basic metals, food products and rubber and
plastics.
Main export partners: European Union 58%, United States 8.8%, China 6.4%, Switzerland
4.1% and Turkey 1.9%
Import goods: machinery, data processing equipment, vehicles, chemicals, oil and gas,
metals, electric equipment, pharmaceuticals, foodstuffs, agricultural products.
Main import partners: European Union 57.6%, China 9.9%, United States 6.2%, Switzerland
4.7% and Russia 2.8%
GDP growth: 1.8% (2016)
Inflation (CPI): 1.7% (2017)
Population below poverty line: 16.7% (2016)
Labour force by occupation: agriculture (1.6%), industry (24.6%), services (73.8%)
(2011)
Unemployment: 5.6% (July 2017)
Average gross salary: 44,400 ($52,200) annual (2016)
Main industries: Iron, steel, coal, cement, chemicals, machinery, vehicles, machine
tools, electronics, automobiles, shipbuilding and textiles.
Ease-of-doing-business rank: 17th (2017)
Netherlands China France

USA Italy
France USA UK

Netherlands China
IT Technology
Electronic and optical components and devices
Pharmaceutical products
Aircraft and aircraft products
Motor vehicles and motor vehicle parts
Machinery
Pharmaceutical products
IT Technology
Electronic and optical components and devices
INNOVATION AND
TECHNOLOGICAL USE
IN GERMANY
Germany is better than US and China at adapting inventions to
industry and spreading them throughout the business sector.

German manufacturers are contributing to employment growth and


real income expansion.

Germany has a network of public institutions that help companies


recombine and improve ideas.
Germany doesnt only seek to form new industries, it also infuses its
existing industries with new ideas and technologies. For example, BMW
is based on innovation in information and communication technologies,
and how many of the best Germany doesnt lets old industries die and
renews them with new technologies and innovation.

Germanys workforce is constantly trained, enabling it to use the most


radical innovations in the most diverse and creative ways to produce and
improve products and services.
OVERVIEW OF GERMAN AUTO INDUSTRY
Germany - one of the top 3 automobile manufacturers

VW, Audi, BMW, Daimler, Porsche and Opel (GM)

The largest share of passenger car production in Europe with over 29% market share (France - 18%, Spain - 13%, UK - 9%)

Car-making accounts for 17% of German exports

6 million new cars are being produced in Germany every year

5.5 million German cars are made outside of the country

22
Double taxation - This means, for example, that tax cannot be levied in Germany on income or
capital, if it has already been taxed in India. However, the German authorities can take the foreign
income or capital into consideration when setting the tax rate on income in Germany.

Investment protection - Under the agreement, both countries must permit investments in their
territory in accordance with their own laws and policies. Both countries are required to guarantee
investors fair and equitable treatment, full protection and security, and are not permitted to treat
investors less favourably than their own investors or other third-party investors.

Trade agreement The agreement will cover trade in goods and services. This agreement will
replace the current free trade agreements India has with member states of the European Union.

Other agreements - In 2013, the two countries signed six agreements designed to promote
cooperation in areas such as higher education, civil security research, agriculture, product safety and
green energy. Further agreements on cooperation in scientific research and technological development
also exist.
Regarding skill development, Modi said, Germanys extensive work in skill
development, which has set the standards globally, can benefit the youth of India.
India is giving an impetus to next-generation infrastructure and this is an area in which
we want to work extensively with Germany. We have fast-tracked investments from
Germany under the Make in India initiative.
Whether it be bilateral relations, humanitarian issues, regional or global issues, every
discussion with the Chancellor has been very beneficial for me, Modi said. The pace
of development of our relations is fast, the direction is positive and the destination is
clear. Germany will always find India as a powerful, prepared and capable partner,
Modi added.
IMPORT EXPORT
German imports from India amounted to exports to India amounted to $11.8 billion or
$7billion or 2.7% of India's overall 3% of India's overall imports in 2015. The 10
exports in 2015. The 10 major major commodities exported from Germany
commodities exported from India to to India were:
Electronic equipment: $1.3 billion
Germany were:
Medical, technical equipment: $962.4 million
Machinery: $627 million
Vehicles: $879.6 million
Organic chemicals: $563.4 million
Organic chemicals: $649.5 million
Electronic equipment: $397.4 million
Plastics: $640.6 million
Iron or steel products: $383.1 million
Other chemical goods: $327.2 million
Footwear: $314.9 million
Iron or steel products: $326.9 million
Vehicles: $280 million
Iron and steel: $300.2 million
Other textiles, worn clothing: $248.9 million
Pharmaceuticals: $215.7 million
Integrity and Loyalty

Work Loving Ethics

Importance of Seniority

Value of Structures and Rules


Specialization over Generalization

Importance of Time

High prosperity

Separation of Private and Public Spheres


I. MINIMUM WORKING
CONDITIONS
Minimum working conditions that must be observed are-
1. Maximum Work Periods and Minimum Rest Periods
2. Minimum paid vacation entitlements
3. Minimum wage, including overtime
4. Regulations on health, safety, and hygiene at work
5. Maternity/parental leave and youth protection
6. Non-discrimination provisions including prohibitions on gender discrimination.
Salary Overtime

Healthy
Holidays and Safe
Workplace
VI. MAXIMUM WORKING WEEK
1. The statutory maximum working time is 8 hours per day from Monday to Saturday.
2. Working on Sundays and public holidays is generally forbidden, unless explicitly permitted
by statutory law.
3. The statutory maximum weekly working time is 48 hours.
4. The regular daily working time may be extended up to 10 hours, provided that on average
8 hours per working day are not exceeded within a reference period of 6 months or 24
weeks.
5. An uninterrupted rest period of 11 hours after daily work must be guaranteed.
GERMAN HABITS
Bringing flowers when visiting someone.
APOLOGIZING FOR BEING LATE
ASKING FOR THE WINDOW OR DOOR TO BE
SHUT
LECTURING PEOPLE AT THE RED LIGHT
SEPARATING TRASH
RESPECTING AUTHORITY
TALKING ABOUT THE NEWS
GERMAN BUSINESS
VALUES
AND DISTINCTIVE
QUALITIES
Dont worry if some German businesspeople seem slightly aloof, correct and rather blunt at the same time. Hierarchy, directness,
and a certain measure of separation between work and private life are essential values in German business culture.

Formality and a certain lack of flexibility: This does not only mean arriving on time for a meeting, greeting everyone politely,
and sticking to the agenda. Germans are also hierarchical in their decision-making. Business negotiations, contracts, and joint
projects are approved by management, and it may take your contacts some time to get back to you.
Professionalism: Titles, references, diplomas, and certificates are taken seriously. A person with academic credentials, good
qualifications, and professional skills commands a lot of respect. Logical, convincing reasons for moving forward with your business
cooperation are usually preferred to "putting on a good show".
Work ethic: Projects may initially proceed at a slower pace since many Germans tend to be thorough, detail-oriented, averse to
risks, and keen on producing good results. The emphasis on punctuality, though, ensures that most schedules and deadlines are kept.
Bluntness is not automatically rudeness. Germans simply want to get straight to the point, with a directness that can make
foreigners uncomfortable: Dont expect your German business contacts to be particularly subtle or to refrain from honest
criticism, and dont be offended by overly assertive behavior. The latter is a way of emphasizing their position.
Fairness and loyalty: When a German business partner tells you they will think about an offer,
they usually mean exactly what they say. They dont like to be pressured after such an open answer,
and you will achieve more if you give them time. And when business negotiations reach a deadlock,
lots of Germans want to come up with a compromise in the interest of both parties. Taking
complete advantage of one side would seem fundamentally unfair to them.
STRAIGHT FORWARD AND PRIVATE: Germans are often straightforward and assertive in a
business setting, but they may not make too much small talk. They dont appreciate unnecessary
levity in important discussions, and they might avoid mentioning intimate details from their private
lives.
Face-to-face communication

First impressions are very important to Germans, and may impact upon the outcome of your business relationship with your German counterpart. There are a number of verbal and non-verbal
communication issues you should consider when doing business with a German.

Non-verbal Communication

Generous personal distance is found between speakers in a conversation. At least an arms length between two speakers is generally expected.

Eye contact is expected and respected. Uninterrupted eye contact can be awkward for those not used to such etiquette; however, eye contact demonstrates attention and interest in a
conversation. Avoiding eye contact may be interpreted as conveying the opposite message while in Germany.

Direct eye contact is especially true when toasting. (Say Prost! when toasting with beer and Zum wohl! when toasting with wine).

An extended middle finger is an obscene gesture, as is pointing the index finger at ones temple especially while driving.

German behaviour in public is generally reserved and formal. Thus, waving and shouting at a person who is far away may attract negative attention.

Germans enjoy quietness and privacy. They may thus often close their doors but will be happy to receive you if you knock on the door. A closed door does not necessarily mean that the person
cannot be disturbed.

In a meeting context, an exchange of business cards usually takes place. Cards do not necessarily have to be printed in German. Having a good supply of cards is advisable. Any title above a
bachelors level should be included on your card.

Germans show their appreciation of a presentation at the end of a business meeting by rapping their knuckles against the table top
VERBAL COMMUNICATION

Do not call people at home after 10 p.m. unless you have asked them first if it is all right to do so.
Do not expect to reach anyone in the office after 5 p.m. Monday through Thursday and after 4 p.m. on Fridays.
When answering the phone in Germany, it is common to identify yourself by your last name.
World War II and the Holocaust may be uncomfortable topics for some Germans, particularly elderly individuals. If such matters come up
in conversation try to speak sensitively and / or neutrally if you do not want to risk causing offence. It may be prudent to avoid initiating
such a discussion unless you are confident your company would be amenable to it.
Germans are at the same time reserved and direct. They take their time to warm towards you while speaking their mind immediately. Do
not be offended! It is not meant to be a personal assault.
In general conversation, Germans are very straightforward and often use only a few polite, chatty phrases. Typically, they get to the point
rather quickly and expect to have results at the end of a meeting.
Noting and making use of these examples is recommended when doing business in Germany.
Making contact

The Germans in general are typically conservative as far as physical gesturing is concerned. Unlike in France, men never kiss men, and public displays
of affection are not common, particularly in a business environment. Public gestures of affection tend to be reserved for close family and friends.
Germans will usually smile at strangers (in a shop for example) to be polite, but dont be offended if they dont this is just part of a generally
reserved culture.

Germans value and keep a larger personal space around them than do inhabitants of other European countries. However, it is not unusual that when
queuing to pay at a shop, Germans will stand very close to the person in front of them.

Courtesies such as handshaking and politeness go a long way, to create a good image to your German counterpart. In business situations, shake
hands both at the beginning and the end of a meeting. People who have worked together for years still shake hands each morning as if it were the
first time they had met. Additionally, a handshake may be accompanied with a slight bow. Reciprocating the nod is a good way to make a good
impression, as failure to respond with this nod/bow (especially to a superior) may get you off to a bad start. Be sure to look directly into the
persons eyes while shaking hands. When being introduced to a woman, wait to see if she extends her hand.

Germans tend to make eye contact often, so try to maintain it when it is made with you. This is a sign of attentiveness, so dont be quick to assume it
is a threatening gesture. As this is just part of the culture it is not uncommon for eye contact to be made on the street as well, again with no
aggression intended. Expressive use of the hands is minimal in most conversations. Do not use exaggerated or indirect communication styles during
business meetings with your German counterparts. It creates an impression of insincerity and dishonesty.

As business people tend to be formal and conservative, business relationships are formal, orderly and professional. Keep the hierarchy in mind and
always address your message to the appropriate person in the organisation.
With 82 million people, Germany has the largest population in the European union.
One third of the country is covered in forest and woodland.
Berlin, the capital of Germany has the largest railway station of Europe.
Berlin is 9 times bigger than Paris and has more bridges than Venice.
In Germany, there is no punishment for a prisoner who tries to escape from jail
because it is a basc human instinct to be free.
It is illegal to run out of fuel on highways.
From 1989 to 2009, about 2000 schools were closed in Germany because of scarcity
of children.
The population of Germany is in decline and has fallen by 2 million in the last decade.
Hamburgers got their name from Hamburg city of Germany.
In 2014, Germany officially abolished college tuition fees, even for international
students.
Around 5500 world war 2 bombs are discovered in Germany every year and defused,
and average of 15 per day.
Fanta was originated in Germany as a result if difficulties importing Coca-cola during
world war 2.
Performing the Nazi salute in Germany is a criminal offence punishable by upto 3
years of imprisonment.
In 1916, German empire allowed citizens to take passport photos with their dogs.
The first printed book was in German.
Most taxis in Germany are Mercedes.
CONCLUSION

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