The Importance Of Bureaucratic Environment In Germany

The Bureaucratic Environment deals with the system of rules and procedures that involves the business of running an organization. The rules deal with imports, local manufacturing, and taxation. Under German law imports are subject to tariffs if they are not from countries from within the European Union. This tax rate adds 19% to domestic products and must be paid to the German Customs Authority. The only good part about this tax is that the tax can be deducted as a “input tax. ” Furthermore, under imports is the complex trade barriers that make it difficult hurdle for a company that wishes to enter a market in Germany. In Germany there are complex set of rules and safety standards. These barriers are not meant to be discriminatory but can be largely applied (“Chapter 5: Trade Regulations” 2015). The next area that Bureaucratic Environment that deals with is local manufacturing. Germany is a power house when it comes to manufacturing. Germany is the third largest exporter in the world. Germany has the ability to do this as the factory workers enjoy a higher quality of life. The wage for a person working in a factor is 11% higher than it is here in the US. The only concern for local manufacturing is the strong presence of powerful unions (Kavoussi). The last area to look at is Germany’s imports. Germany is the third largest importer …show more content…
Germany is not just an active member of the European Union or the United Nations. Germany is also a member of the G4, G8, G20, Organization for Economic Co-operation and Development and NATO. They constantly maintain a network of relations with about 190 countries. Together with being an active member, Germany is largely involved in global initiatives such as humanitarian aid and the climate. In global initiative Germany is the third largest donor, behind US and France, for global initiatives (“Table 1: Net