Question

What are some Macro and Micro Political Risks for Germany?

Answer 1

The Macro Political Risks are the risks that would affect the business operation in a nation. The macro effect may be caused by the macroeconomic factors may affect the business in the nation or outside of the national government's control.

• The decision of Germany to be out of the European Union is going to be a macro decision that is going to bother the businesses both within the Germany economy working in the Union as well as the other Economies in the European Union.
• Germany has turned inwards for its own manufacturing in the COVID 19 days which would majorly implicate the largest trading partner of Germany, China in this period.

The micro political risk can be the change that would occur within the nation which maybe business laws, taxations, and investment regulations. The micro-business factors affect the business and the relation with the businesses of the nation and the portion of the overall economy.

• The decision of doing business via online sources is a micro decision but may affect the business working in Germany. The incompetence of the business to adhere to the new norms may affect the business and the portion of the revenue generated by the business in the economy is supposed to be stressed.
• The businesses which are associated with the producer have to change its operations too with such inputs. This may have stress in the business operations for a short while but its effective.