P&G Expands Its Business in Germany Essay

2521 Words Oct 2nd, 2015 11 Pages
“P&G expands its business in Germany”
Paraphrased by Sahar Fatima
Germany became an important place for businesses:
After World War II, it was 20th century Germany became the most lucrative European location for American direct investment. According to a study by Boston Consulting Group in 2004, they mentioned that the number of investment in Europe was 140 billion euro with 850,000 jobs. This report was published by American Chamber of Commerce. According to study among 100 American companies, Germany was on top in Europe for holding companies and was on 3rd in manufacturing sector in Europe’s eastern part and Great Britain.
BCG stated that If Germany would be dealt in shares; American market analyst will suggest buying those
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But World War I created significant financial shift which made the US worldwide most important creditor. In 1920s, the first boom of US foreign direct investment in Europe can be noticed. America was also strong in monetary terms. Because of American FDI, Germany improved to a great extent.

Paraphrased by Kiran Shahzadi
But this boom of American investment was not for the very long time in Europe. In 1930, this came to an end soon just because of the instability in countries and collapse of economy due to breakout of 2nd world war and biggest and the worst effects of great depression.
For the recovery of Europe, this country war running some programs to revitalize the country’s economy including EEC and world monitory system. The liberalization of world trade trend was getting popular and new challenges were also there which the economy had to face. American firms were really interested to enter in European market and wanted to invest there. As the political and economic conditions of Europe was quite well in 1960s. At that time tariffs were very high because of this there were local manufacturing plants which found more profitable. From that time it was realized that direct investment is more beneficial for businesses then export. Europe is using this business tactics and now become the most attractive country for international businesses.
After 1950, in this period the US foreign direct investment in federal republic slopes downward. The reason behind

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