Top glove is the largest rubber glove manufacturer in Malaysia. Its inception in Malaysia was at 1991 and it has the history of 19 years. Top glove produce many types gloves, apron, and some rubber product (Top Glove, 2010) (Appendix A). In January 2010, production of natural rubber rose 12.3 % compared to December 2009. It increased of 48.4 % in yearly basis which about 35,524 tons of natural rubbers. In imports, natural rubber was 73,216 tons and decrease 10.8 %. The main import countries were Thailand (71.3%), Philippines (6.5%), Myanmar (4.2%), Viet Nam (3.4%) and Indonesia (3.3%). However, it increase 68.4% in import when compare with year 2010 and 2009. In export, the natural rubber shrinking 1.2% compared to December 2009 which is total 69,549 tons (Department of statistics Malaysia, 2010). Germany, the plastic and rubber production, processing and engineering are closely connected. It mainly export to the important destinations Russia, USA, Hong Kong, Macao, France, Turkey, Poland, Italy, Spain, Great Britain, Switzerland and other countries. In 2009, German plastics producers was decline in total output from 20m tons in 2008 to 17m tons. However, it holds 22.5 percent of market share and is consider a major market whereby China hold 23.5 percent respectively since China is the main export market for German plastic and rubber machinery. Although China has takeover the leading position in market value, Germany is still leading country in term of exporting. The German plastic and rubber machinery is set to increase their sales more than 11% in year 2010 and 2011 particularly from Asia demand and this is the positive forecast make by the VDMA Plastics and Rubber Machinery Association The objective of doing this report is to analysis the macro environment of Germany and explores new markets in Germany. Besides, we need to analysis whether it is possible for Top Glove to enter Germany’s market. We had analysis the political and economic aspect of Germany.
Political and Economic
Large and Open Market
Germany has a large market with high gross domestic product (GDP). Germany has the GDP of $2.96 trillion in the year of 2009(economywatch, 2009). A high gross domestic product will secure an investor in investing in the country. GDP represent a country economic output. An investor will like to choose a country with high GDP to invest or do business; this is because a high GDP means the economy of the country is healthy. This represent that the country has high productivity and the ability to produce product. Germany has the largest economy among the Europe Countries. A country with large economic will benefit the investors. This is because a large market will provide more opportunity for the investors. With more opportunities and options investors believe that this situation will benefit them. Larger market tend to have greater competitive too, with greater competitive, investors will always try to improve their product so that they will be in a gain situation. This is the reason why investors would like to invest in larger market compare to those countries with smaller market. Germany was ranked top five strongest economies in the world. Country with a rank of top economy in the world will let investors to feel much secure to invest in the country. Investors will feel comfortable and safe compare to invest in those countries which have weak economic. Investors tend to choose country with strong economies is because country with strong economic is much more stable. Country with strong economic will overcome obstacles much easier than countries with weak economic. This is because country with strong economic like Germany has the ability to confront it. Besides, Germany has high population too; a high population will increase the demand of product. As investors they would like to have greater demand for product to increase the company’s profit. Germany is an open market too. Germany welcomes foreign...
Please join StudyMode to read the full document