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Country Analysis

27 Feb 2017Government and Law Essays

ECONOMIC & LEGAL CONDITIONS

GERMANY

The economy of Germany has finally seen an upturn after the stagnation of economy over 5 years, from 2000-2005. It is well known fact that before the union of East Germany and West Germany, East Germany was less developed economically, as compared to the West Germany. So, after the union, the efforts for integration and modernization of East Germany started. This was a costly practice, but the need of the time. Even today, around 80 billion USD are transferred from the West to East Germany. For past five years, there was a period of stagnation in the German economy. Its GDP growth rate was around 0.7% over past five years. Last year, it was 2.6% which was a healthy sign for their economy. The period of stagnation can be attributed to a number of reasons like non-flexible labor market structure, almost flat consumption levels in the domestic markets, falling investment levels in plants and equipments, higher cost of capital and near to monopoly situation in the service market. In order to boost up economy, a number of measures have been taken. These measures include, increasing female participation in labor market, corporate restructuring, increase in mandatory retirement age. The GDO of Germany is 2.81 Trillion USD, according to estimated of 2007. Its per capita income is 34,200 USD. Its inflation rate is 2.3%. Germany is technologically very advanced country, especially in terms of engineering. Its industry portfolio includes iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles.

The government of Germany is very stable so far. Despite the first left-right coalition in past 36 years, the government is going on well. Its civil society is quite developed. Moreover, under the umbrella of European Union, it has introduced a number of reforms to make itself capable of leveraging the benefits of EU membership. Thus, its laws and regulations are getting more liberal.

CHINA

Previously, the Chinese economy was a typical model of communism. It was the country which had no international trade at all. it was closed to the foreign investors. However, over the time the need to transform into market based economy was realized. The strategy was gradual. The steps taken were, discarding collectivist agricultural system, liberal trade policies, more independence to the state owned enterprises, making China attractive for foreign investors. China is the second largest growing economy of the world. As a result of restructuring there has been very significant improvement in the Chinese economy. According to estimates, its GDP has increased tenfold since then. The government of China is facing several economic challenges. Few of them are:
Due to the layoffs in the state owned enterprises, there is a need to create opportunities for them.

Reducing corruption

Removing environmental damage, resulting from the transformation

Besides, China is also one of the aging countries in the world. There is massive urbanization. The GDP of China is very significantly remarkable. It is 6.991 trillion $. Because of its huge population, its per capita income is not that very impressive. It is 5300 USD. Around 45% of its labor force is engaged with agriculture. Inflation rate is 4% and official unemployment rate is 4%. The real growth rate is 11.4% that is commendable. Its major industries are: mining and ore processing, iron, steel, aluminum, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites. China’s major exports are plant and equipment, plastic, optical and medical surgical instruments, and iron and steel. Exports totaled 974 Billion USD.In terms of government, China is stable. Its laws are now comparatively liberal and open to international market. However, those international firms need to adjust to its culture, which is significantly different from others.

QATAR

The economy of Qatar is purely based on Oil. According to the estimated, around 85% of its export earning, 70% of government revenues and 60% of GDP comes from the oil export. Due to recent boom in oil prices has affected the revenues of Qatar positively. The current economic policy of Qatar is that of expanding the production of natural resources. As a result, it is growing these days. Moreover, it is also focusing on the growth of non-energy sectors. The current GDP (2007) of Qatar is around 57.69 Billion USD. It has one of the highest per capita incomes in the world, which is 80,900 USD per year. Its real growth rate, which is 14.2 % is higher than the inflation rate of 13.8%. In the view of current economic conditions, such performance is not bad at all.

The major industries in Qatar are the refinement and production of crude oil. Since natural gas is there in abundance, therefore, the ammonia and fertilizer industry is also one of the significant pies in the industrial pie chart of Qatar. Besides, petrochemical industry and cement industry are also one of the contributors of the GDP of Qatar.

Qatar’s present prospering economic condition is due to the natural gas and petroleum reserves over here. Since these resources are in ample amount, therefore sustained economic growth of Qatar is expected in next few decades. This conclusion is based on the premises that its 15 billion barrels are expected to last over 20 years. Likewise, its 25 trillion cubic meters of natural gas reserves are also expected to sustain for very longer period of time. Thus, it can be asserted that Qatar economy has high prospects of being prosperous in coming years.

In terms of the stability of Government, Qatar is a bit weak. This can be asserted due to past events of overthrowing the rulers. Over the time, its laws and regulations are getting more liberal and now its policy is oriented towards attracting foreign direct investment.

GERMANY

The economy of Germany has finally seen an upturn after the stagnation of economy over 5 years, from 2000-2005. It is well known fact that before the union of East Germany and West Germany, East Germany was less developed economically, as compared to the West Germany. So, after the union, the efforts for integration and modernization of East Germany started. This was a costly practice, but the need of the time. Even today, around 80 billion USD are transferred from the West to East Germany. For past five years, there was a period of stagnation in the German economy. Its GDP growth rate was around 0.7% over past five years. Last year, it was 2.6% which was a healthy sign for their economy. The period of stagnation can be attributed to a number of reasons like non-flexible labor market structure, almost flat consumption levels in the domestic markets, falling investment levels in plants and equipments, higher cost of capital and near to monopoly situation in the service market. In order to boost up economy, a number of measures have been taken. These measures include, increasing female participation in labor market, corporate restructuring, increase in mandatory retirement age. The GDO of Germany is 2.81 Trillion USD, according to estimated of 2007. Its per capita income is 34,200 USD. Its inflation rate is 2.3%. Germany is technologically very advanced country, especially in terms of engineering. Its industry portfolio includes iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food and beverages, shipbuilding, textiles.
The government of Germany is very stable so far. Despite the first left-right coalition in past 36 years, the government is going on well. Its civil society is quite developed. Moreover, under the umbrella of European Union, it has introduced a number of reforms to make itself capable of leveraging the benefits of EU membership. Thus, its laws and regulations are getting more liberal.

SOCIAL CONDITIONS

CHINA

According to the estimates of 2006, the literacy rate in China is 90.9%. This is quite high literacy rate. Probably this high literacy rate is the reason for the technological advancements by China. 45% of Chinese population is engaged with agriculture, 24% with industry and rest with service sector. There is a very growing trend of Urbanization, as there are greater economic activities in coastal areas than do internal areas. The religions there are officially atheist; Daoist (Taoist), Buddhist, Christian 3%–4%, Muslim 1%–2% (2002 est.) China is a collectivist society. They are very much adhered to their culture and cultural values.

GERMANY
Germany is the country that is considered to be the heaven of engineering education. Its literacy rate is 99%. Its labor force is 43 Million. 33% are engaged with industry, 2% with agriculture and the rest with services. The economic level and social conditions in the West Germany are better than East Germany. Population over there is 82,369,548 (growth rate: 0.0%); birth rate: 8.1/1000; infant mortality rate: 4.0/1000; life expectancy: 79.1; density per sq mi: 235. Major religions are protestant 34%, Roman Catholic 34%, Islam 4%, Unaffiliated or other 28%. Germany is very much an individualistic society with little long term orientation.

QATAR
The literacy rate in Qatar is 89%. Its population is 907,229 (growth rate: 2.4%); birth rate: 15.6/1000; infant mortality rate: 17.5/1000; life expectancy: 74.1; density per sq mi: 214. Major religions in Qatar are Muslim 77.5%, Christian 8.5%, other 14% (2004 census). In terms of social values, Qatar is the collectivist society. Traditionally its culture reflects Islamic teachings.

TECHNOLOGICAL FACTORS

CHINA
In terms of technology too, China is far ahead of many of its neighbors, especially in terms of military technology. Most of the modern technologies are being adopted very rapidly there. Armed forces are not the only area Chinese are experts at. They are renowned for low cost development. Although low cost labor is main reason for the low cost development. However, modernization of processes has also led to this effect. In today’s world, one of the most significant drivers of technological development is the use of internet. According to the estimates of 2007, there were around 232,780 internet hosts in China. Moreover, according to the estimates of 2006, there are around 123 million internet users in China.

GERMANY
In case of Germany, the technological advancements are quite obvious. Germany has been the centre of many engineering endeavors. It is significantly advanced country, in terms of technology. According to the estimates of 2007, there were around 16 million internet hosts in Germany. Moreover, according to the estimates of 2006, there are around 38 million internet users in Germany.

QATAR
Qatar is not very much developed in terms of technology. However, the government is making the efforts to ensure more development in technological areas. This is being done through building institutions for technical education, foreign educational affiliations and alliances. Moreover, according to the estimates of 2006, there are around 289,900 internet users in Germany.

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