Essay on Germany Fdi

1304 Words Oct 19th, 2011 6 Pages
FDI Report
Germany has a welcoming attitude towards foreign direct investment (FDI). The German market is open for investment in practically all industry sectors. German law makes no distinction between Germans and foreign nationals regarding investments or the establishment of companies. The legal framework for FDI in Germany favors the principle of freedom of foreign trade and payment.
Germany has secured its reputation as a leading investment location worldwide. Moving up to fifth place overall and first in Europe, Germany’s attractiveness as a business location was recognized in a survey of top managers worldwide. Germany has stable its economic policy and has strong management of the economic crisis, foreign
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The empirical studies presented here come to the conclusion that outward FDI by German enterprises will not have a detrimental effect on investment in Germany over the long term.
In macroeconomic terms, the increase in employment at foreign subsidiaries does not mean a loss of jobs in Germany, either. It would appear that the increased foreign presence has made the German economy more competitive overall. Finally, it is evident that the high level of German FDI in the new EU member states has resulted in changes in trade relations with the old EU member states.

According to official Bundesbank (German Central Bank) statistics, 77% of all FDI stocks in Germany originate from within the EU-27, with a further 9% stemming from the remaining European non-EU countries. Investments from outside the EU continue to grow. North America accounts for 8% of FDI stock, while Asia holds a five percent share. Especially Asian countries increased their FDI stocks in Germany in recent years. Both China and India have recorded growth rates of around 100 percent since 2006.
The American Chamber of Commerce highlights the positive regard in which the German business environment is held by US companies. Invited to indicate their main medium-term investment focus within the EU, 60% of participating American companies

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