Justin Woods

Overall Score: 73.8 Global Rank: 16

Germany Facts:

  • Population: 80.8 Million
  • GDP: $3.2 Trillion
  • GDP Growth%: .5%
  • GDP per capita: $40,007
  • Unemployment: 5.3%
  • Inflation: 1.6%
  • Foreign Direct Investment: 26.7 Billion

Legal System

Germany has a legal system that many other countries follow. Germany's legal system is called the Federal Republic of Germany. The German supreme court is named the Federal Constitutional Court. The 20,000 independent judges that exist in Germany are in that position for life as a law. The German supreme court is named the Federal Constitutional Court. The administration of justice is separated into 5 branches; ordinary, labor, administrative, social, and financial courts.
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Competitive Markets

Germany's trade market is similar to the free-market economy that we, the USA, use. Germany does ,however, have a few more government regulations and some more social welfare programs. Unemployment has dropped my 2 million. Germany has one of the highest Internet access in all of Europe allowing for diverse trade and knowledge. Germany also has some of the highest standards of trade in the world making their products.
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Limits on Government Regulation

Germany has a 19% tax on imported goods from non-EU states. In April 2006 new laws came to be that would strengthen sanitation requirements for fisheries. Only high-risk items need to be labeled specifically. Germany is making their trade be completely computerized. Germany is also trying to get rid of all the paper work involved in trade and make it be on computers and virtually go paperless.
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An Efficient Capital Market

Prices are taken from the electronic Xetra trading system. The prices are equivalent of the FT 30 and the Dow Jones Industrial Average, and because of its small selection it does not necessarily represent the actual price of the economy as whole. The DAX has two versions, called performance index and price index. In Germany the performance index is most commonly used, in other countries the price index is more accurate to the actual prices of stock.
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Monetary Stability

Germany is part of the Stability and Growth Pact that influences 28 European Countries. This means that Germany's economy is constantly being watched by people of the European Commission who make sure that it stays stable. The Council of Ministers is also a part of monitoring and keeping the economy stable in Germany.
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Low Tax Rate

The tax rate in Germany is anywhere from 0-45. 95% of all taxes in Germany are Federal. Most government income is from income taxes. The ability to pay and equality on taxes are 2 of the governing rules of taxation in Germany.
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Free Trade

Since Germany gets most of its money from exports it tries to make sure that it's trade barriers are very low and is able to trade anyone. They also strive to create new markets. Germany recently agreed to a treaty with Singapore that will reduce trade barriers with Singapore when it comes to cars.
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How Germany Became Europe's Richest Country