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from a number of trade arrangements, such as ※African growth and opportunity act and the generalized system of preferences§ which is a formal, non mutual system of exemption from the more general rules of the WTO. In addition to previous agreements South Africa also signed individual agreements with the European Union, and with the Southern African Development Community (Sars, 2009). In term of country natural resources, South Africa is the only country in the world that manufactures fuel from coal. While the country is enriched with minerals and precious stones unfortunately it＊s missing the most important natural resource which is oil and gas, And they are taking a huge stake in the country imports, South Africa will be accounted for 14.38% of African regional oil demand by 2013 (exporthelp, 2008), which will have a direct impact on their budget deficit leading it high levels. In relation to imports ,South Africa imports motor cars and other motor vehicles mainly designed for personnel transportation, such as station wagons and racing cars, the imports of these vehicles increased from $647,264,000 in 2001 to $3,627,106,000 in 2005 with an increase rate of 700% just in a few years (indexmundi, 2007).

2.3 Manufacturing imports of South Africa:

As mentioned before South Africa is well known for its precious stones and it＊s considered to be world's largest producer of platinum, gold, and chromium; also significant coal production. In addition to non metallic mineral such as pearls and precious or semi-precious stones, both categories un-worked or worked. Iron and steel also considered as an important manufacturing import, with it all product line subsidiaries like ※pig-iron, spiegeleisen, sponge iron, iron or steel granules, powders and ferroalloys plus the flat-rolled products of alloy steel, in a very competitive price§.

In term of major export markets, EU countries plus Switzerland, Russia, Turkey and US are the most countries that imports from South Africa; moreover they are associated of the ※Generalized System of Preferences§ from the WTO.

2.4 Foreign Direct Investment in South Africa:

South Africa has its own unique investment incentives, such as industrial development zones. They are being created to build industrial estates providing facilities and services designed for export industries. Moreover these facilities are linked to international airports or ports, with a privilege to import items free of customs and trade restrictions. These privileges are associated with attractive regulatory regime and investment facilitation services. Moreover there is the SME ※Small and Medium Enterprise§ development Program, this program tailored to generate employment, and make opportunities for the new and advanced skills to its labor force, as well as to encourage FDI in the country. It is one of the programs that provide incentives for those planning to expand to existing South African based companies, or even to start new projects, including technology, manufacturing, business services, information and communications, tourism, and valued agricultural projects. these eligible projects can claim an annual tax free cash grant of up to 10% of the total; investment cost, paid over two or three years if a labor usage criteria is met (Lowtax, 2004).

3. Germany

3.1 Economy - overview:

Germany is the world's third largest economy