Germany business travel information

Doing business in Germany

The German economy is the world’s fourth largest and, after the expansion of the EU, accounts for nearly one-fifth of European Union GDP. Germany’s "social market" economy largely follows free-market principles, but with a considerable degree of government regulation and generous social welfare programs.

Germany is the largest consumer market in the European Union with a population of over 82 million. However, the importance of the German market goes well beyond its borders. An enormous amount of worldwide trade is conducted in Germany at some of the world’s largest trade events, such as Medica, Hannover Fair, Automechanika, and the ITB Tourism Show. The volume of trade, number of consumers, and Germany’s geographic location at the heart of a 27-member European Union that added ten members in 2004, and two more in 2007 make it a keystone around which many foreign firms seek to build their European and worldwide expansion strategies.

Real German GDP expanded by just over 1% in 2008 despite the increasing financial turmoil, which began to affect industrial exports; forecasters predict that Germany would register annual economic growth of almost 2% in 2008 and that GDP would decline by more than 2% in 2009. Consumer demand, which had a temporary uptick after years of sluggishness, is declining again. Germany suffered the most dramatic drop in exports of any major Western European economy in 2008. Business confidence indices sank steadily in 2008 in the face of great uncertainty in financial markets. The German economy continues to suffer from structural problems, including over-regulation in labor markets, taxation, and business establishment, as well as substantial social insurance costs.

The German government’s plans for reform have taken a back seat to the more urgent concerns of addressing the major downturn. Most observers believe that additional reforms to enhance Germany’s global competitiveness are unlikely to occur before the consequences of the economic crisis are overcome.

Continuing high unemployment, particularly long-term unemployment, has long been among Germany’s most serious political and economic problems. The economic growth Germany experienced between 2006 and 2008 rapidly reduced unemployment to levels not seen since before German unification, but there was a significant rise in unemployment in 2009.

In spite of the deepening crisis, the German labor market displayed remarkably robust growth until year-end 2008 although employment growth flattened during the course of the year. In 2008, the average unemployment rate was 7,8% or 3,268 million, down from 9 percent or 3,776 million in 2007. This was the lowest average annual unemployment since 1992.

In eastern Germany, the average unemployment rate was 13,1%, still more than twice as high as in the western part of the country (6,4%). For the first time since February 2006, unemployment rose (by 18.000 to 7,6%) in December 2008. The number of persons employed rose to a record high of 40,83 million in November 2008 (500.000 more than in November 2007). However, the relative increase of just over 1% was the lowest rate of growth since December 2006.

Although it often takes several months before the labor market reflects macroeconomic shifts, developments now show that the downturn has reached the labor market. The Federal Employment Agency’s Institute for Employment Research (IAB) reversed its more optimistic forecast from October 2008 and projected unemployment figures to rise in 2009, maybe by up to 500,000 or more. The common denominator of most economic forecasts at the beginning of the year 2009 was that non-seasonally adjusted unemployment could exceed 4 million in early 2010 and lift the unemployment rate from slightly under 8 to 9,5%.

Product tip: Keep an eye on the size of your trolley Many luggage stores sell suitcases described as ’carry-on’, but these suitcases are sometimes larger than the size most airlines will accept. The safe maximum size is 114 cm, in the form of a 55 x 40 x 20 cm bag. Some airlines allow up to as much as 140 cm, but most do not. Not only do luggage stores and manufacturers seldom tell you if their bag is legally sized or not, but they also frequently mis-measure their bag. Their measurements generally are for the inside of the main compartment, and assume that any external pockets are of zero thickness, rather than stuffed full of things (which can easily add another inch or more) and ignore any external framing such as wheels and carry handle (which can also add another couple of inches).

In case of emergencies

Before you go on your business trip to , Deutschland you should always get a travel insurance with a complete coverage.

Make sure your health care insurance is sufficiently covered.
Maybe this is already covered in your regular health care insurance but often you will need to cover this with the travel insurance. Also a good travel insurance should cover the costs of travel for a relative in case of seriously illness or an accident.

The business trip travel insurance should also cover the costs of search, rescue and repatriation.
When you go on business trips on a regular basis, the easiest way to get insured is with an annual multi-trip insurance.

Keep in mind that you can also use this insurance for your pleasure trips so don`t forget to include to insure your leisure activities.

The English language is these days quit common in Germany. When you have a medical emergency you can turn to any emergency hospital to get English speaking help.

Business Etiquette and Protocol

If your are planning a business trip to Deutschland it is a good idea to know at least a little about the culture and etiquette in Deutschland. Use these business etiquette tips as a guideline only. There are too many social, personal and business nuances in Deutschland to be considered. There is no uniform approach possible for all occasions.
For more in-depth information I suggest you buy and read the "Global Business Etiquettes" book.

• Communication:
  Use formal names, professional and academic titles.
  Hierarchy, following rules and protocols is very important.
  Germans are very direct, do not confuse this with rudeness.
  Never interrupt somebody.
  Dress formal and conservative.
  


• Meetings and negotiations:
  A perfect planning is very important in German culture.
  When making appointments use the 24-hour clock time format to avoid misunderstandings.
  Be very punctual, if you suspect you will late, call and explain the situation.
  Never cancel a meeting at the last minute.
  Shake hands with everyone upon arriving at the meeting and leaving. Keep the hierarchy in mind!
  Remain standing until invited to sit down or others do so.
  Little time is spent to getting to know you before the business conversation begins.
  Agenda’s are strictly followed.
  Keep your presentation as short as possible, to the point, accurate and precise, do not exaggerate.
  Some Germans will signal their approval by tapping their knuckles on the tabletop.
  Follow up a meeting with a letter with all agreements outlined.
  


• Table manners:
  If unsure on how to behave, mimic the behavior of others.
  Wait until you are appointed a seat.
  Avoid alcohol if possible, otherwise drink little.
  If making a toast, stand up.
  Put a napkin on your lap, eat not too much but finish your plate.
  Keep your hands above the table when eating.
  After finishing your plate lay your knife and fork parallel across the right side of your plate.
  Thank your host at the end of the meal.
  

Some phrases in German

German is a West Germanic language, thus related to and classified alongside English and Dutch. It is one of the world’s major languages and the most widely spoken first language in the European Union.

Although in business people speak English, some German phrases can always come in hand....

Good day	Guten Tag
Good morning	Guten Morgen
Good evening	Guten Abend
How are you?	Wie geht es Ihnen?
I’m fine, thanks. And you?	Mir geht es gut, danke, und Ihnen?
What’s your name?	Wie heißen Sie?
My name is ...	Ich heiße ...
Pleased to meet you	Schön, Sie kennen zu lernen Sehr erfreut
Goodbye	Auf wiedersehen
Good night	Gute Nacht
Have a nice day	Schönen Tag noch!
Bon appetit	Guten Appetit!
Cheers/Good health!	Prost!
I don’t understand	Ich verstehe nicht
Please write it down	Können Sie das bitte aufschreiben?
How do you say ... in German?	Wie sagt man ... auf Deutsch?
How much is this?	Wieviel kostet das?
Sorry	Es tut mir leid!
Excuse me	Entschuldigen Sie!
Thank you	Danke schön
You’re welcome	Bitte schön
Where’s the toilet?	Wo ist die Toilette?
Yes / No	Ja / Nein