UNIT 1-FIN630-IP-JMAYS - INTERNATIONAL FINANICAL MARKET...

INTERNATIONAL FINANICAL MARKET 1
Unit 1 Individual Project
FIN630
Jacquelyn Mays
American InterContinental University
August 26, 2012

INTERNATIONAL FINANICAL MARKET 2
ABSTRACT
In the body of my paper the fellow students and I are to prepare a proposal to the steering
committee comparing the advantages and disadvantages of the operations from the two foreign
countries I had selected. One of the countries has to be in the European Union and the other must
not belong to it. Then as you read farther in my paper I will discuss the factors that is consider to
be comparative also the different countries currencies, trade policies, and culture variables that
could affect operations and the profitability.

INTERNATIONAL FINANICAL MARKET 3
To; The Steering Committee
From: Jacquelyn Mays
Reasoning for the Proposal: to discuss the foreign countries and there profitability to do business
there
The two foreign countries that I had selected was Germany and it is a part of the
European Union and the other country that I had selected was Aruba and they are not a part of
the European Union.
Germany is located on the heart of Western Europe and it is bordered with Denmark,
France, Switzerland, Poland, Austria, Luxembourg, the North Sea, and the Baltic Sea. It also has
a strategic location on the North Europe Plain and it is along the entrance to the Baltic Sea. The
government system is a federal republic and the chief of state is the president and the head of
government is the Chancellor. They also have a mix economic system in which the economy
includes a variety of private freedom that is combined with the centralized economic planning
and the government regulation. It is also a member of the European Union (EU).
The economy of Germany is highly appreciative and it has many organizations and a
greater amount in population. However they are the fifth largest in the world when it comes
down to purchasing power parity (PPP) and is Europe largest leading exporter of machinery,
vehicles, chemicals, and household equipment. They benefit from a highly skilled labor force.
However like other European neighbors Germany has faced some demographic challenges that
have sustained long term growth. Since the low fertility rates are declining net immigration are
increasing the pressure of the country’s social welfare system and has compelled the government
to undertake structural reforms. Eastern Germany economy where unemployment can exceed
20% in some municipalities for continues to be a costly and long term process with the total