Global Business in Context

Global
Business in
Context

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Company Overview.................................................................................................................................3
Political environment in Germany...........................................................................................................3
Economic environment in Germany........................................................................................................4
Social environment in Germany..............................................................................................................4
Technological environment in Germany..................................................................................................5
Legal environment in Germany...............................................................................................................6
Environmental factors in Germany..........................................................................................................6
Recommendations.......................................................................................................................................7
CONCLUSION...............................................................................................................................................7
REFERENCES................................................................................................................................................8

INTRODUCTION
Globalization refers to integration of several economies in the world into one
comprehensive economy (Bartsch and et.al., 2016). This has led to promotion of global business.
Global business means dealing in international trade with a company which is not located in the
home country of the company. In this report, Morgan Motors Company has been chosen which is
a car manufacturer based in Malvern, United Kingdom. The company wishes to move its
production to Germany. In this project, specific analysis will be made on multiple aspects of
business environment in Germany and how they will affect the company.
MAIN BODY
Company Overview
Morgan Motor Company is based in Malvern, United Kingdom. It specializes in
manufacturing of cars. It is planning to move its production to Germany. It wishes to do so for
expansion purposes and aiming for maximization of profits. It seeks to profit from moving to
another country so that it can acquire market share there.
Political environment in Germany
Political environment includes a multitude of factors which are required to be considered
by a business organization (Poltical Factors Affect Business Environment, 2018). These factors
are government policy, political stability, corruption, foreign trade etc. In the context of Morgan
Motors, it can be said that it needs to consider all these factors before deciding to move its
production to Germany. Germany is a country which has stable political environment. It is a
democratic country where elections are held regularly. Thus in terms of political situation it is a
very stable country and that is the reason why it regularly attracts various investors who wish to
invest in the country so that they can maximize their returns on the products and services which
they are producing.
Also, another reason for attraction of investors towards the nation can be the incentives
which are provided by the government to boost business growth. Various incentives are provided
by the government in Germany to boost the growth of business and attract foreign investment.
These incentives are-
 Tax benefits- Tax benefits are offered to industries (Cumming and Zahra, 2016). Thus
this helps the industries as they have to pay lower tax on their incomes. Thus they would
be able to maximize their profits easily.
 Ease of procedures- Procedures for grant of permission to set up an industry in Germany
are eased so that new businesses do not face any problem.