company presentation_ronak jain

7/29/2019 Company Presentation_Ronak Jain

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Country Presentation

(Germany & Norway)

Presented By:

Ronak Jain4111033033


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GERMANY


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Socio-Polito-Economic Indicators of

Germany Political Overview

Germany is a Federal Republic. The FederalGovernment, based in Berlin, consists of the FederalChancellor and the Cabinet of Federal Ministers.

Federal elections are held every four years. In addition,there are 16 state governments and thousands of localgovernment 'communes'.

Each state has its own constitution and a state

parliament. State elections are held every four or fiveyears.

Current Ruling Party: Christian Democratic Union(CDU)


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Economic Overview

Germany is the largest economy in Europe andthe fourth-largest economy in the world (GDP

was more than a $3.2 trillion in 2012).Germany is ranked as the world's third-largest

exporter: approximately $1.7 trillion with a

trade surplus of $186 billion. Exports of goods and services made up about

52 per cent of GDP.


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Germany's exports of services are relatively

underdeveloped and reform in the services

sectors is relatively slow, but new sectors, like

IT, biotechnology and renewable energy are

growing markedly.

Agriculture accounts for only one per cent of

GDP.


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Economic Indicators

GDP: 3570.56 billion US dollars. The GDP value of Germany represents 5.76 percent

of the world economy.


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Population:81.73 Million in 2012

Inflation Rate: 1.55% in Feb 2013

Foreign Exchange Reserves: Decreased to

184947 EUR Million in January of 2013 from188630 EUR Million in December of 2012.

Current Account: Surplus of 11300 EUR Millionin January of 2013.

BOT: surplus of 13.70 EUR Billion in January of2013.

IIP: Decreased 1.30 percent in January of 2013


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Federal Financial Supervisory

Authority

The Federal Financial SupervisoryAuthority is the financial regulatory authorityfor Germany.

It is an independent federal institution with

headquarters in Bonn and Frankfurt and fallsunder the supervision of the Federal Ministry ofFinance (Germany).

It supervises about 2,700 banks, 800 financialservices institutions and over 700 insuranceundertakings.


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The main task of BaFin is the supervision of

banks, insurance companies and the trading of

securities and ensure the viability, integrity and

stability of the German financial system.


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Generali

Deutschland)

German

Development Bank )

Commerzbank,

Deutsche)

Deutsche

Bundesbank

Financial Architecture


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Financial Institutions

German Development Bank and

Deutsche Corporation for International

Development Cooperation


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Financial Crisis 2008

Germany experienced a sharp contraction of itseconomy beginning at the second half of 2008.

With its large export-oriented manufacturingsector and the specialization in investment goods,Germany is very exposed to developments inglobal trade. As the financial crisis triggered thesharp decline of world trade, this very openeconomy was hit sharper than others.

Germany had a negative income growth of 6.9 %between the third quarter of 2008 and the secondquarter of 2009.


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It reached the German economy via two channels:

The first being finance.

Many of its banks were overexposed to toxic

speculative papers originating mainly in the USand Ireland. Some of the big private banks,

especially Commerzbank and Hypo Real Estate,

and top public banks (the Landesbanken) had tobe rescued by public guarantees of gargantuan

proportions, totalling 400 billion.


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Second one is Trade.

It suffered immensely through the collapse ofinternational demand.

The automobile industry, in particular, sufferedbecause of the overlap of the financial crisiswith the energy crisis. The capital goods

industry lost sales because consumer industriespostponed capital investments when faced witha drop in demand.


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Germanys Quick Recovery

Germanys success in recovering from the

crisis was due to reforms that were similar to

the Erhard reforms made in the 1950s;

however different reforms were needed in2008. Factors that caused the financial crisis

and different economic realities that existed in

Europe in 2008 required that the Germangovernment create new policies that diverged

from Erhards reforms.


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Germanys rapid recovery is accredited to

changes in the economic environment and

governmental reforms:

German Exports

Hamburgs Harbour

Tax Policies and Labour Reforms


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Foreign Ownership participation in

Germany Germany is an essential conduit to trade and investment.

According to the United National Conference on Trade andDevelopment, investors have made Germany one of theleading countries in foreign direct investment whichaccounted for EUR 509 billion in 2010.

More than 55,000 foreign companies operate in Germanyand employ approximately three million people acrossdozens of sectors.

Chinese investors have made Germany its number onelocation for green-field investments since 2008 andAmerican executives consistently rank Germany first inEurope as a business location.


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The Foreign direct investment; net inflows (% of GDP) in Germany was last reported at

1.13 in 2011


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INDIA-GERMANY BILATERAL

RELATIONS Germany is amongst Indias most important

partners for trade, investment and technology.

Germany is Indias largest trading partner inEuropean Union and 6th largest trading partnerglobally.

Germany is also Indias second largest technologypartner.

Currently India ranks at the 28th position amongsttrading partners for Germany worldwide,accounting for 0.7% of total German trade andranks 5th among Asian exporters to Germany.


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For the period April 2000 to September 2012, Germanyhas been the eighth largest investor with cumulativeFDI inflows of USD 5.05 billion.

Sectors such as services, chemicals, automobiles,trading and electric equipment were main sectors forGerman investment.

Indian investment in Germany has also increased inrecent years. The IT sector continues to be the best

represented in terms of foreign direct investment. Indiahas initiated 40 projects in Germany since 2003, 20 ofwhich are in the software and IT sectors.


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Deutsche Bundesbank

It is the central bank of the Federal Republic

of Germany and as such part of the European

System of Central Banks (ESCB).

The Bundesbank was established in 1957 and

its headquater is in Frankfrut.


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DUTIES

It shall participate in the performance of the ESCB'stasks with the primary objective of maintaining pricestability, and shall arrange for the execution of domesticand international payments.

Based on the Bundesbank Act and the ECB Statute, theBundesbank has four areas of activity, which it mostlyhandles jointly with the ECB:

The Bundesbank as a note-issuing bank

The Bundesbank as the banks' banker (clearing houseand bank supervision)

The Bundesbank as the state's banker

The Bundesbank as the manager of currency reserves


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NORWAY


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Socio-Polito-Economic Parameters

The Kingdom of Norway occupies the westernand northern portions of Europe, bordered bySweden, Finland, and Russia.

Political OverviewNorway is a constitutional monarchy and

parliamentary democracy with legislative powersvested in the Storting (parliament).

The Storting is made up of 169 members directlyelected for four-year terms by proportionalrepresentation.


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Current Ruling Government: Centre-Left

coalition

Norway is not a member of the EU, tried to

establish the closest links possible with the EU

through the European Economic Area (EEA)

agreement.


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Economic Overview

Norway has an open economy with a floating exchangerate.

Norway's emergence as a major oil and gas producer in

the mid-1970s transformed its economy. The petroleum sector contributes over half of Norway's

total export revenue. Norway is the world's eleventhlargest producer of oil and second largest exporter ofnatural gas. It has approximately half of the remainingreserves of oil and gas in Europe and globally, is thethird-biggest oil exporter, behind Saudi Arabia andRussia.


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It supplies 15 per cent of Europe's gas needs

and, within a few years, is expected to increase

gas exports dramatically to account for 30 per

cent of European gas imports.


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Economic Indicators

GDP: 485.80 billion US dollars in 2011.


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Population: 5.0 million people in 2011 Inflation rate: 1 percent in February of 2013.

Foreign Exchange Reserve: Increased to 298998

NOK Million in January of 2013 from 288589NOK Million in December of 2012.

Current Account: Surplus of 96000 Million NOKin the fourth quarter of 2012.

BOT: Surplus of 33652 Million NOK in Februaryof 2013.

IIP: -7.5 in December 2012


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Financial Architecture

Norges Bank monitors the entire financial system with

particular emphasis on mitigating systemic risk.


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Financial Institutions

Norwegian Agency for Development

Cooperation


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Effect of Financial Crisis on Norway

Norway has been impacted by the internationalfinancial crisis through various channels.

The negative effects were very rapidly reflected inthe dollar-based Norwegian interbank market.When the dollar market completely dried up inthe wake of the Lehman Brothers' failure, itbecame difficult for Norwegian banks to obtainfunding.

The Norwegian stock market(Oslo Bors) isheavily affected, dropped as much as 54 per centin 2008.


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In the bond market opposite trend has beenseen for corporate bonds where risk premiumshave risen substantially.

. The negative trend in the real economy hasbrought a substantial rise in loan losses, albeitfrom a very low level.

At the same time, credit risk premiums thebanks need to pay on their borrowing haverisen markedly.


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Indo Norwegian Bilateral Relations


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Key commodities of Indias Exports: Main

import items from India include articles of

apparels, textile, yarn & fabrics, misc.

manufactured articles, metals, non-metalmineral manufacture, fruit & vegetables,

furniture & parts, travel goods, hand bags,

coffee, tea & spices, footwear.


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Key commodities ofIndias Imports: . Some of

the major exports of Norway to India are:

machinery, iron & steel, electronic machinery

appliances, general industrial machinery,scientific control equipment, non-ferrous

metals, telecom & equipment.


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Investments

Cumulative FDI inflows (including equity, re-investedearnings & other capital - from April 2000 to March2011) were US$ 194.81 billion.

Top sectors in India that attracted FDI equity inflows

(from April 2000 to March 2011) from NORWAY, are:

Chemicals (Other Than Fertilizers) (45%)

Electrical Equipments (13%)

Electronics (7%) Drugs & Pharmaceuticals (7%)

Consultancy Services (4%)


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Norges Bank

Norges Bank / Noregs Bank is the centralbank of Norway.

Apart from having traditional central bank

responsibilities such as financial stability andprice stability, it manages The GovernmentPension Fund of Norway, a stabilization fund thatmay be the world's largest sovereign wealth fund.

The limited transparency of some SWFs makes itdifficult to make accurate assessments oftheir assets under management.


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Thank You

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