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1 School of Management BSM 414 04 MM: International Management Arnold Candray Political Risks of Global Strategy and Implementation in a selected Global Market Cecilia Acevedo Espinosa Course start date: 09/30/2013 Date submitted: 10/31/2013 2 Political Risks of Global Strategy and Implementation in a selected Global Market When a company wants to extend into other global markets it is vital to make an extend analysis of the multiple vari
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   1 School of Management BSM 414 04 MM: International Management  Arnold Candray   Political Risks of Global Strategy and Implementation in a selected Global Market Cecilia Acevedo Espinosa Course start date: 09/30/2013 Date submitted: 10/31/2013   2 Political Risks of Global Strategy and Implementation in a selected Global Market When a company wants to extend into other global markets it is vital to make an extend analysis of the multiple variables of the different culture, population, geographical circumstances, political ideology, economy and Human resources ranking of the country where we want to establish. This is the main reason of why there exist different associations that provide enough information in order to make the best decision. During this paper, it is intended to analyze one country and decide whether is proper to start a new business there or not. The nation about to be analyzed is one of the most powerful nations in Europe, which has grown during the last years. Since the German-speaking people inhabited Europe, they have not been united. The territory was divided into many states with different governors. The medieval Germany is known as an era of divisions, many other lands like France and England started to unify the divisions into one huge state but the Germans could not succeed in this. There were constant wars between the kingdoms that left the division of the country into three different religions: Roman Catholics, Lutheran and Calvinist. These divisions gave more ferocity in the thirty years’ war. The peace of Westfalia of 1648 left Germany divided again into different parts with two main states: Prussia and Austria, the small states tried to make alliances with them depending on the local conditions until 1813 in the battle of Leipzig where Napoleon was   3 driven out of Germany. In the next 50 years the unification of Germany grew and started the formation of democracy in the country. There were revolutions that rejected the union. States like Prussia and Austria denied the idea of letting the power. It was until 1871 when Germany was unified and transformed into an empire. Sensing the power of nationalism, emperor Bismark of Prussia started the search of the preservation of a social feudal order and the triumph of his country, Prussia, in the long contest with Austria for preeminence in Germany. After military campaigns, Bismark achieved a united country without Austria. After loosing world war I the country ended in an economical crisis with the obligation of paying the victors all the damages caused as well as other critical measures which cause the formation of the Nationalist, Socialist Germans Workers party (NAZI) which, with the chancellor Adolf Hitler, caused world war II. After six years of war, Germany was defeated and Economical and political destroyed. Again, the country is divided and controlled by the allies. With only 78 years of unity, the nation was divided into west and East Germany with a physical barrier called the Berlin Wall. In an attempt to not repeat the same mistake as in 1919, the western countries helped West Germany to stand and recovery. With a slow economic collapse of the Communist world, the nation is, in 1990, reunified. The Federal republic of Germany, best known as Germany is considered as the Europe’s largest economy and one of the most populous countries in the continent. This   Nation is well known as a vital member of the continent’s defense, political and economic   4 organizations. After the world war II and the division into two German states, this nation has evolved gaining power trough the years. Germany is located on North European Plain and near the entrance to the Baltic Sea. It has a total area of 357,022 square meters where the climate is mainly cold, cloudy and wet providing the advantage of Eolic energy production. According to the CIA data base (2013), this nation has a population of 81,147,262 persons where 13.1% are between the ages of 0-14 years, 10.8% between 15-24 years, 42% between 15-54 years, 13.13% between 55-64 years and 20.9% are over 65 years old. In the graphic it is shown the classification of the  population according to their gender and their age. The economic Ideology or freedom in Germany’s different states must be adjusted depending on the institutional characteristics. The authority in Economic making has been limited by the Laender governments; those limits affect the states because they are not autonomous in setting tax rates, however, they policy responsibility in shaping corporate taxation. The economic freedom for the nation does not have many components than the world economic freedom indices and take resemblance to the Canadian provinces and the US states. There are two main political parties in the republic: the social democratic party and the Conservative Christian Democratic Union. These parties do not compete against each other;
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