Investing in Real Estate in Germany Financial and Labour Forces to Consider

It is fundamentally important to make considerations on the financial and labour forces directing business operations in a country before making investment decisions.Advertising We will write a custom research paper sample on Investing in Real Estate in Germany: Financial and Labour Forces to Consider specifically for you for only $16.05 $11/page Learn More These forces are at the core of business operations and must therefore receive adequate consideration when investing at an international level. The financial forces are critically important since they directly influence the viability, profitability and performance of the investment. On the other hand, the human resource component is the most important asset that an organization can have at its disposal. Financial forces such as foreign exchange rates, tariffs, inflation, currency exchange rates, taxes and balance of payments have the capacity to influence international business. In finance, foreign ex change basically means the price of one country’s currency expressed in terms of another. Germany has a strong currency market which trades in all major currencies, including the US dollar, Pound, and the Euro. The government has put in place stringent fiscal and monetary policies to ensure Germany’s money market remains credible. The country follows all internationally recognized financial and monetary rules and conventions such as the International Fisher Effect and the Purchasing Power Parity. Germany has also made it easier for international investors to conduct business in the country by incorporating all the exchange rates regulations in its financial systems. For instance, the country has made provisions for spot rates, forward currency market, and forward rate. Spot rates basically entail the exchange rate arrangement made between two currencies for delivery of goods and services within two days of business (Madura Fox, 2007, p. 29). Germany charges reasonable tariffs on imported goods. The tariffs are at par with other European Union member states, but international investors get to enjoy massive tax cuts and other tax benefits. As it is the case in other countries, international investors have to cope with several taxes, including income tax, value-added tax, and withholding tax. However, the taxes are friendly to business. An analysis of financial forces cannot be complete without evaluating the Balance of Payments (BOP) as it helps the investor to know the country’s state of economy.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Germany’s BOP has remained vibrant for a very long time, and has not slipped into a trading deficit in the recent past. Due to the financial and economic stability witnessed in the country even in the face of the current economic recession, currency devaluation and currency or trade controls have not been practiced for a very long time. These two concepts are known to negatively affect BOP (Madura Fox, 2007, p. 29). Germany’s inflation rate is also conducive for international business as it is close to zero It is imperative to evaluate the labour forces when making international investment decisions. The investment must be efficient, profitable and competitive. This can only be made possible by critically evaluating the quality and quantity of the labour force to be engaged. Labour quality encompasses the attitudes, educational backgrounds and expertise of the available employees in the market (SeaZone, 2008, p. 1). Germany has a highly educated and skilled labour force especially in technical fields. On the other hand, labour quantity entails the amount of available potential workers who meet the set educational and skill requirements necessary to assist the investment meet its business needs. In Germany, finding the right mix of personnel with the right educat ional background and skills should not present any challenge to the real estate investment. Making adequate considerations on labour quantity is absolutely important for any international investment as it is directly related to wage scales, potential training costs, and efficiencies in production (SeaZone, 2008, p. 1). Germany has one of the most attractive employment policies in Europe. The regulations on labour mobility have been relaxed to favour international business due to the fact that international investors have the capacity to import the right mix of professionals into the country. This therefore means that investing organizations will have the capacity to bring skilled employees with the needed experience and educational background from any part of the world. Many diverse ethnic groups and cultures have set base in Germany due to the country’s relaxed migration laws compared to other European countries. As such, international investment may be greatly assisted by m inorities since they are mostly accessible for employment. The minorities can greatly assist international business since they are able to speak the investors’ language in addition to the fact that they are less nationalistic than the mainstream population (SeaZone, 2008, p. 2). Germany does not restrain the formation of labour unions. Indeed, the country has many groups of organized employees formed for purposes of improving the workers’ conditions of living In addition to safeguarding their ideological orientations. Indeed, any investing organization should realize that Germany has one of the most formidable trade unions in the world.Advertising We will write a custom research paper sample on Investing in Real Estate in Germany: Financial and Labour Forces to Consider specifically for you for only $16.05 $11/page Learn More Germany is a leading labour market since there is enough readily available skilled manpower within commuting distan ce of the organizations. Germans are also known for their hard work, positive attitude to work and agility (SeaZone, 2008, p. 2). All said and done, it is indeed true that Germany offers great investment opportunities judging from both financial and labour forces. Reference List Madula, J., Fox, R. (2007). International financial Management. Cengage Learning EMEA. ISBN: 9781844803606 SeaZone. (2008). Understanding basic labour forces in international markets. Web. 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Diante Hardy Essays - Community Building, Community, Free Essays

Diante Hardy Essays - Community Building, Community, Free Essays Diante Hardy Ms.Gormley/ Ms. Burdick Community Development Leadership Program (CDLP) 2 April 2015 Reflective Essay 3 What does it mean to understand the community? Does it mean what society thinks of their community? It could also mean the people of the community feel empowered enough to gain confidence to fight back, for what they believe in and their community of which they are a part of. I believe to understand the community; you need to build your community by enabling people to feel responsible for where they live. Chapter 5, "Understanding Community", there was a section in the chapter that helped me understand how to build the community. The reading discussed building community within your neighborhoods; if we build the community in multicultural settings, then smaller and larger cities will become diverse with different ethnic and language groups. Where I live, the Spanish culture is more common than different ethnic groups. In order to build communities within neighborhoods, you need to bring people together to discuss problems in their neighborhoods and how they can fix it. I believe that this will build towards a shared sense of community. I say this because it's good to have different ideas and perspectives from different types of people to help understand their community. Chapter 5, "Understanding Community", affects my life as well as others lives by giving some insight on how to understand the community as well as people coming together and discuss their ideas and opinions to build the community. The way we bring people together is by creating social bridges. Social bridges are to enable people to reach out for resources and information that are not available to them in their environment. A neighborhood may not have the same resources as another neighborhood may have so once neighborhoods begin to help each other out, then you can build up your community together. A community is a place, a neighborhood where people live and interact with one another. When problems begin to surface, it's because thes e people in the communities do not communicate with each other. In my community a lot of crime happens, but that is because my community doesn't create things to prevent crime from happening. Also there are hardly any programs to p revent young children from joining gangs, and that is also the parents fault as well. Once the people in the community start to understand each other as a whole, then we can build the community. I've learned a major point to help me understand the community. I've learned that in order to understand the community, the people within the communities need to be more interactive with each other to then be able to have a say for what needs to be done inside the community. "Community is the set of obligations and responsibilities that people assume when they are willing to help one another (Rubin Rubin p.9 7) ." When people work together, they achieve their goal. Understanding the community is about being strategic and getting people from neighborhoods to work together. Chapter 5, "Understanding Community" gave me some insight on how to build and understand the community. The point that resonated with me can enable the society to come together as one to understand their community and make it a better place.