Foreign Trade Policy The German government emphasized that "the Federal Government should always consider the development of foreign trade as a matter of importance." It called for the German economy to "go global". Trade activities are mainly carried out by enterprises on their own, the government's function focuses on the implementation of macro-control, and at the same time to ensure full autonomy of enterprises in foreign trade under the premise of the main efforts to promote the development of foreign trade in the following areas. (a) Establishing and supporting export-oriented enterprise groups and consortia. In particular, it promotes enterprise groups and consortia that specialize in industrial-heavy products such as chemicals, iron and steel, electrics, automobiles and aeronautics, petroleum processing, and machinery manufacturing. The Companies Act prohibits the establishment of joint-stock companies with a capitalization of less than DM 500,000, strengthens mergers between large enterprises and the acquisition and merger of small enterprises, and provides financial and credit support for such acquisitions and mergers. Most German small and medium-sized enterprises are subordinate to powerful large companies, and these large enterprise groups and consortia are increasingly diversifying and developing transnational operations, becoming the vanguard of Germany's "going global". Second, the comprehensive use of fiscal, financial and other economic means to encourage exports. Preferential tax rates or tax exemptions, export subsidies, export credits, the establishment of a state-guaranteed export loan system, as well as the compensation of exporters who encountered risks, and the repeated use of exchange rate leverage to promote export trade. Thirdly, Germany actively participates in the activities of international economic organizations and creates favourable conditions for the expansion of foreign trade by signing bilateral and multilateral reciprocal agreements between countries. Germany has joined international reciprocal organizations such as the International Settlement Organization and the European Economic ****syndicate, and plays a pivotal role in them. Fourth, guide enterprises to introduce advanced technology and update the structure of export commodities. The digestion and absorption of introduced advanced technology and the development of new products will lead to a rapid increase in production capacity and promote the development of foreign trade. Fifth, the establishment of foreign trade service organizations, for enterprises to the world services, these institutions are roughly three types: export-import banks, foreign trade insurance companies, foreign trade business consulting agencies. In short, due to the German government in the above aspects of macro-control, as well as the domestic and international environment more favorable factors of the combined effect of Germany's foreign trade development is very fast, to become the world's foreign trade powers.
Germany's largest trading partners Federal Republic of Germany's import and export region is mainly in Europe. 1991 European countries in Germany's total import and export trade accounted for the proportion of 50.4% and 72% respectively. Germany's first 12 major import partners were, in order of importance, France, the Netherlands, Italy, Belgium and Luxembourg, the United States, the United Kingdom, Japan, Austria, Switzerland, Spain and the Commonwealth of Independent States (CIS). The top 12 export partners are France, Italy, the Netherlands, the United Kingdom, Belgium and Luxembourg, the United States, Austria, Switzerland, Spain, the CIS and Japan. Ten of these countries are in Europe. France is Germany's largest trading partner, with imports from France amounting to DM 78.9 billion and exports to France*** DM 87.5 billion, and Germany solves some of its agricultural and mineral resource deficiencies through its Western European partner countries. In 1989, for example, the Federal Republic of Germany imported 52.3 per cent of its own food and meat, 55.1 per cent of its feed and tobacco and 31.7 per cent of its mineral fuels, and it exported mainly manufactured goods to the countries of Western Europe. The share of American goods in German imports has gradually declined, while German automobiles, iron and steel, machinery and chemicals have been exported to the United States in increasing quantities. Germany's trade deficit with Japan grew (in 1991 it amounted to DM 33.5 billion). In response to Japan's challenge, Germany, on the one hand, asked Japan to take "self-restraint" measures, and on the other hand, strengthened its own industrial and technological strength and increased exports to Japan. In addition, Germany has more trade with Southeast Asia, South Africa, Eastern Europe, China and Germany's trade is not a lot, but increasing year by year.
The structure of foreign trade The structure of Germany's import and export commodities varies from one historical period to another. In recent years, the Federal Republic of Germany has been gradually replacing the export of semi-finished products with the export of manufactured products. On the import side, the proportion of manufactured goods is also increasing. In the Federal Republic of Germany's total exports mainly from the original food, raw materials and other primary products gradually transition to manufactured goods, especially its industrial manufactured goods in the world market is very competitive. Machinery and equipment, chemicals, electronics, automobiles and iron and steel topped the list of exports. Imports are dominated by agricultural products and textiles. The high cost of German goods undermines the competitiveness of its exports, so Germany concentrates its efforts on the production of high-quality and high-technology products. This, together with comprehensive and attentive service and the honoring of delivery contracts, has made "Made in Germany" commodities famous all over the world. Since 1952, Germany has been running a trade surplus for the most part, with the balance of German exports reaching 134.5 billion marks in 1989 and falling to 20.8 billion marks in 1991.
Foreign Trade Service Institutions Germany's foreign trade service institutions are relatively sound, these institutions can be broadly divided into three categories: export-import banks, foreign insurance companies, foreign trade business consulting organizations. Most of these institutions have a semi-official nature, to promote Germany's foreign trade plays an important role. I. Export-Import Bank. It is mainly engaged in the settlement of foreign trade and international financial business, and participates in the export credit business of Germany. Second, foreign trade insurance company. Its business is divided into two categories: one is the export credit insurance business handled by the state; the other is the company's own name in the state under the control of the ordinary commercial insurance. In Germany, such companies must be guaranteed by the company in order to obtain more than two years of export credit. In November 1949, at the behest and with the financial support of the Federal Government, the German Economic Research Association (Deutsche Wirtschaftsforschungsgesellschaft) was set up with the five major economic research institutes of the Federal Republic of Germany as its main members, with the main purpose of observing and analysing the problems of foreign trade and the world economy and of advising enterprises on the regions in which they trade and on the structure of prices, exchange rates and commodities. All of these institutions' services enable the government and the business community to quickly grasp the general trend of changes in the world market and the specific commodity market, and take timely countermeasures and measures to promote German enterprises to the world has played an important role.
Helmers Guarantee The German government to encourage exports, export enterprises and commercial banks to provide official guarantee. Hermes is the name of the god of commerce in Greek mythology, so it is so named. Hamburg-based Hermes credit insurance company commissioned by the federal government, specializing in the German commercial banks to issue export credits, to give the risk of guarantee. If due to international political, military and other reasons, the German export enterprises or banks providing export credit can not recover the goods or loans, the government that is through the insurance to compensate for its losses. The Hermes Guarantee only guarantees loans to the Mark and is mainly used for the purchase of German industrial equipment. Because of Germany's financial difficulties in recent years, the authorities have been scrutinizing applicants more and more closely.
Exports of high-tech industrial goods Germany is a major trading nation in the world. Its high-tech industrial products in the world market share is very high, in 1989 the following products accounted for 1/4 to 1/3: steam engines 40.7%, printing presses 38.3%, welding technology 33.3%, textile machines 32.l%, testing machines 31.8%, packaging and food machines 31.8%, 29.5% of precision machine tools, 29.4% of the lathe, rolling mill bearings 27.6%. Scales 26.8%. These are just some of the goods exported. German goods are superior in quality.
(Dictionary of Knowledge of the Seven Western Countries)