Market Profile and Considerations

Market Profile and Considerations

Although the business makes a profit, there is a window for expansion into the German market. One key benefit of the expansion is that the business will likely make more money from the global market (Naz & Ahmad, 2018). The business will also benefit from an expanded talent pool in Germany. Other benefits include improved reputation, diversified markets, and access to new investment opportunities. Hire our assignment writing services in case your assignment is devastating you.

Section One: Drivers for Global Entry

In a broader perspective, the key drivers of globalization include financial, political, technological, social, and economic factors. Economic factors may include lower trade and investment barriers (Naz & Ahmad, 2018). Significantly, the company will leverage Germany’s’ E.U. membership to benefit from cheaper raw materials from other E.U. member countries. On the other hand, political factors are the policies designed to promote international trade.

Business Impacts of Global Business

A business that moves to a global environment experiences political changes. By globalizing, businesses become part of trade agreements in their host country (Ristovska & Ristovska, 2014). For instance, membership in free trade agreements such as NAFTA and the European Union opens up more market opportunities for the business.

Besides, businesses that globalize experience expanded technological advancement. As a result, they can compete with larger international businesses (Ristovska & Ristovska, 2014). Technological tools such as the Internet allow companies to access information regardless of size or location.

Societal Impact of Global Business

Business globalization enables people to access new cultures. That includes access to information, goods, and art. For instance, through globalization, a consumer can stream a UK-made movie from the U.S. through Netflix. Besides, globalization improves the standard of living among people from developed countries.

Cultural Considerations for Global Business

The cultural differences between countries affect business communication. These differences border around low-context and high-context cultures. For instance, in the U.S. (high context culture), communication is often explicit. The case differs for low-context cultures like Russia, where communication is implicit. Cultural differences also affect workplace interactions. Some differences between cultures include cheek kisses, hugging, and handshaking. Researching the country, the business will join to achieve professional and successful interactions is important.

Section Two: Market Profile

Cultural Profile

Category	United States	Germany
Commonly Spoken Languages	English, Spanish, and Chinese	German, English, and Spanish
Commonly Practiced Religions	Christianity, Judaism, and Islam	Christianity, Judaism, and Buddhism
Power Distance Index (PDI)	High power distance 0.0453	Low power distance 0.2322
Individualism Versus Collectivism (IDV)	Individualistic (91)	Individualistic (67)
Masculinity Versus Femininity (MAS)	Highly Masculine (66)	Highly Masculine (62)
Uncertainty Avoidance Index (UAI)	Uncertainty accepting (46)	Uncertainty avoidant (62)
Long-Term Orientation Versus Short-Term Normative Orientation (LTO)	Long term oriented (83)	Short term oriented (29)
Indulgence Versus Restraint (IVR)	Indulgent (68)	Restrained (40)

Political and Economic Profile

Category	United States	Germany
Political System	Democratic	Democratic
Current Leaders	Joseph Biden (president)	Frank-Walter Steinmeier (chancellor)
Economic Classification	Mixed economy	Mixed economy
Economic Blocs Impacting Trade	·         United States–Mexico–Canada Agreement (USMCA) ·         Dominican Republic-Central American Free Trade Agreement (DR-CAFTA) ·         World Trade Organization	·         European Union ·         World Trade Organization ·         The General Agreement on Tariffs and Trade (GATT)
Gross Domestic Product	$22.99 trillion	$3,846,413.93
Purchasing Power Parity	1.0	0.943
Gross Domestic Product Per Capita	$63,543.58	$ 45,723.64
Human Development Index	0.92	0.947
Gender Development Index	0.922	0.84
Gender Empowerment Measure	0.757	0.765
Human Poverty Index	11.4%	10.3%

Germany is known for its adherence to tight rules and regulations from a cultural perspective—these rules and regulations arise from the country’s cultural profile. For instance, business people in the country insist on contracts and written agreements (Boeing, 2013). On the one hand, such values may seem to take away business flexibility. However, on the positive side, people insist on consistency and mutual obligation. To that end, a business that hires employees in the country will likely retain them for long as Germans abhor reneging on agreements. The case is different in the U.S., where there is a high level of flexibility.

On the economic front, Germany ranks favorably compared to partner countries. The country is the largest economy in the European Union, and it comes forth on the world stage after the U.S., China, and Japan. Many factors are responsible for the country’s economic prowess, including an extensive international network and innovativeness. The desire to innovate coupled with government support gives businesses in the country an upper hand in business. The same cannot be said about the U.S., a bureaucracy-characterized country.

Several economic factors show that Germany is a better destination than the U.S. Firstly, per capita GDP is high in Germany compared to the U.S., implying that households have more to dispose of. Another indicator favoring Germany over the U.S. is the lower poverty level in Germany.

Section Three: Market Considerations

Complete the table below to support your explanations using current exchange rates.

Exchange Rates

Category	The U.S. Dollar	German Euro
Exchange Rate	[Insert information.]	[Insert information.]

Legal and Regulatory Considerations

In principle, Germany’s’ market is open to companies from around the world. However, the Ministry of Economic Affairs and Energy can impose sanctions to ensure public order. The country also protects industries they deem critical so foreign investors cannot delve into such sectors. However, the case is different in the U.S., which is more open, save for regulatory limitations that have come into play lately to target companies from unfriendly countries such as China.

E.U.’s’ market restrictions apply directly to Germany. These trade restrictions apply to business between E.U. member countries and third-party countries. For instance, strict regulations and trade embargos exist in North Korea, Russia, Syria, and Venezuela (Badtke et al., 2021). Besides, trading with entities that promote terrorism is highly restricted. Some of these restrictions include visa bans and capital market restrictions.

Save for the restrictions imposed on sanctioned countries, Germany does not restrict the import and export of capital. However, the government requires reporting exchanges exceeding EUR 12,500 solely for statistical purposes (Badtke et al., 2021). It is easy for a firm operating in Germany to pay for imports without delay.

References

Badtke, F., Brandt, A., & Burrer, S. (2021, December 1). Practical Law US Signon. Signon.thomsonreuters.com. https://content.next.westlaw.com/4-519-4996?__lrTS=20200904163928316&transitionType=Default&contextData=(sc.Default)&firstPage=true

Boeing, M. (2013). Analysis of cultural differences and their effects on marketing products in the United States of America and Germany: A cultural approach to marketing using Edward T. Hall and Geert Hofstede. Anchor Academic Publishing (aap_verlag).

Naz, A., & Ahmad, E. (2018). Driving Factors of Globalization: An Empirical Analysis of the Developed and Developing Countries. Business & Economic Review, 10(1), 133–158. https://doi.org/10.22547/ber/10.1.6

World Bank. (2021). World Bank Group – International Development, Poverty, & Sustainability. World Bank. https://www.worldbank.org/en/home

ORDER A PLAGIARISM-FREE PAPER HERE

We’ll write everything from scratch

---

In this course, you have explored the elements of a market profile, including cultural, political, and economic aspects, and looked at the legal and regulatory market considerations. In this milestone, you will complete the next part of your course project by creating a market profile for your chosen country and creating legal and regulatory considerations.

Scenario

You are a business analyst at a small, domestic organization producing high-quality baseball bats. Your organization has begun to see its sales flatten in the domestic market. While the organization is not losing money, leadership would like to explore options to continue to grow. One option that leadership has noticed competitors attempting is entering international markets.

You have been asked to examine the benefits, drawbacks, and key considerations for your organization to enter one of the global markets below and summarize your findings in a business brief for leadership.

Continue to use your selected market from Milestone One. As a reminder, the options for international markets are:

• Republic of Korea
• Canada
• Germany

Prompt

In this milestone, you will continue to use the Business Brief Template (located in the Guidelines for Submission section of this document). Complete Section Two and the Legal and Regulatory Considerations portion of Section Three. Use course resources and the INT 220 Library Guide to support your responses.

Specifically, it would be best if you addressed the following rubric criteria:

Market Profile: Explore and explain your selected market’s cultural, political, and economic environment to help inform future business decisions regarding expansion from the domestic market.

1. Cultural Profile: Compare and contrast important cultural elements of your selected market against those in the domestic market, including communication, dimensions of culture, attitudes, common business etiquette and practices, and at least five other important aspects of culture.
2. Political and Economic Profile: Compare and contrast important political and economic factors for your selected market against those in the domestic market, including political systems and ideologies, current leaders, economic measures or characteristics used in classification, and government intervention in trade.

 Market Considerations: Discuss your selected market’s legal and regulatory considerations that can impact business decisions regarding expansion to new global markets. It would be best to consider corporate social responsibility for each market consideration.

1. Legal and Regulatory Considerations: Compare and contrast important legal and regulatory requirements of your selected market against those in the domestic market, including trade restrictions, regulations of products or services, legal processes for business transactions, and import restrictions or documentation.