france research paper - global business

5/21/2018 France Research Paper - Global Business

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France

Global Business

Professor Baldridge

Country Analysis Paper

Beth McGinnis

December 11, 2013


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Table of Contents

FRENCH HISTORY TIMELINE ................................................................................................................2

GEOGRAPHY .................................................................................................................................... 13

DEMOGRAPHICS .............................................................................................................................. 22

POLITICAL/LEGAL ............................................................................................................................. 33

ECONOMIC OVERVIEW ..................................................................................................................... 48

STRENGTH, WEAKNESS, OPPORTUNITY, THREATS (SWOT) ANALYSIS ................................................. 64

REFERENCES .................................................................................................................................... 66


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French History Timeline

France has enriched historical events since the Romans conquered France. The historical events

will be broken-down chronologically.

Prehistory (-200BC)

Homo erectus who lived around 950,000 B.C., was the first human found in France. At the end

of Ice Age, prehistoric man began to settle down in agricultural settlements (Neolithic

Revolution). The Celts came from Central Europe and settle in Gaul around 2500 B.C. The

Celts: Iron workers. It was reigned Gaul around until 125 B.C. when the Roman Empire

conquered in southern France. (French History Time , 2013)

Antiquity (200 BC481)

Julius Caesar commanded the Romans invaded in Gaul during the Gallic Wars (58-51 BC).

Augusta was an emperor of Rome. Two hundred years of peace and prosperity as the Pox

Romani. In the 2ndcentury, Romans brought Christianity into Gaul. In the 3rdcentury, the Roman

Empire declined. In the 4thcentury, Barbarian invaders from the East as the Franks, The Vandals

and Visigoths. People were so afraid for their lives and safety, so the people started making

friends with lords in exchange for protection from the barbarians. The Medieval Age began to

emerge. In France, Christianity received boost when Clovis, King of the Franks, converted to

Christianity. The Clovis reign help to stabilize and unity in France. However it was contributed

to fragmentation, because Clovis divided up the territory as gifts and rewards (French History

Time , 2013).


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The Roman Empire: The yellow shows Transapline Gaul. The green shows the remainder

of the Empire (France Empire Map, 1999-2013)

Middle Ages (481-1453)

Charles Martel was the first leader of the Carolingian dynasty. The Frankish kingdom was

expanded and stopped the Muslim advance in 732. He was succeeded by Pepin II. Its called

Pepin the Short. Charlemagne (742-814) expanded the Frankish kingdom. Charlemagne was not

only as a military leader, but he was a great supporter of education and arts. There was a

Carolingian renaissance during Charlemagnes rule, too. After his death, the kingdom was

divided. Sadly, all of Charlemagnes sons died except for the Louis the Pious reigned for 30

years and managed to keep the kingdom together. After Louiss death, there was difference

alliances formed around Louis three sons: Lothar, Louis the German, and Charles the Bald.

Brothers Louis and Charles agreed to keep the lands where they were very powerfulLouis in

German areas and Charles in Frankish areas. Lothar had unorganized lands in the middle. The


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Treaty of Verdun was created by Louis and Charles. The Carolingian dynasty ended in 987 when

Hugh Capet was elected to the throne of France in the beginning of the Capetain Dynasty.

In 1066, the Norman invasion of England, France came under English rule. By 1453, after the

Hundred Years war, France finally drove all English out. In this war, the French kings lost lots

of power to French nobles: however Louis IX, who reigned from 1461 to 1483, laid the

foundations for absolute rule by French kings (In Philip's World Factbook , 2008).

Map of Charlemagnes Empire, Circa 800 AD(France Empire Map, 1999-2013)


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Renaissance (14531598)

Francois I became power the French Crown during the early 16thcentury. He welcomed to

France many Italian artists such as Leonardo da Vinci. Artist influenced the success of the

Renaissance style. Between 1562 and 1598, it increased in the number of the Huguenots

(Protestants). It led to the Wars of Religion between Catholics and Protestants. Catherine de

Medici ordered the St. Bartholomews Day Massacre of hundreds of Protestants. Leonardo da

Vinci died in the arms of Francois I. In 1589, Henri IV reigned of the massacre. He became the

first Bourdon king of France and eventually converted to Catholicism. Henry ended the Wars of

Religion with the Edict of Nantes. It gives the religious and political rights to the Huguenots.

(French History Time , 2013)

Grand Siecle (1598-1715)

In 17thcentury, The French Monarchy became power and extravagance. King Louis XIII and

Cardinal Richelieu transformed Frances feudal monarchy to an absolute monarchy. Louis XIV

reigned from 1461 to 1483. Louis XIV strengthened his own power by keeping all the local

princes and lords occupied with the elaborate court life at his palace at Versailles. In particular

Louis XIVs endless wars were expensive. It left France in financial peril by the end of his reign.

Louis XIV revoked the Edict of Nantes in 1685. Louis XIV died in 1715. Louis XV became the

throne. The Bourgeoisie demanded more political rights and it causes a great problem for Louis

successors. (French History Time , 2013)

Revolution (1715-1804)

The majority of the commoners were against the nobles and clergy, because the nobles and

clergy have the privileges. In the 18 thcentury, enlighten people such as Voltaire and Rousseau


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beginning to question the principles of the old regime and absolutism. They want equal rights

and the abolition of the class system. The Frenchmen had been exposed to the ideas behind the

American Revolution. July 14, 1789, a Parisian mob revolted and stormed the Bastille prison

which was as a symbol of political oppression. The French revolution has begun. It ended

absolute rule by French Kings. On the August 26, 1789, the revolutionaries issued the

Declaration of the Rights of Man which is the principles of Liberte, Egalite, and Fraternite: It

means to end the class system. In 1792, Louis XVI tried for treason and convicted; monarchy

abolished. In 1793, Louis XVI and Queen Marie Antoinette are guillotined in Paris, France. In

1794, Robespierre overthrown and end of Reign of Terror. (French History Time , 2013)

The colors of this flag originated during the French Revolution of 1789. The red and blue are

represent as Paris, while represented the monarchy. The present design was adopted in 1794, and

is meant to symbolize republican principles (In Philip's World Factbook , 2008).


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Napoleonic Era (1804-1870)

In 1799, Napoleon Bonaparte took power and was crowned First Consul. In 1804, he took the

title of emperor Napoleon I. He took the crown from the Pope and placed it on his head himself

directly challenging the authority of the church. Napoleon created a powerful central

administration and engaged in many military campaigns that allowed him to expand his empire.

He fought a series of brilliant military campaignsbefore his final defeat in 1815. (In Philips

World Factbook, 2008). Napoleon was defeated in Russia 1812 and then in Waterloo in 1815.

Eventually, Napoleon was replaced by Louis XVIII who was overthrown by Charles X. Charles

reign reminded people of the old regime. People dont like the old regime anymore. People led to

the July Revolution of 1830 again. The July Monarchy elected a king, Louis Philippe (the Duke

of Orleans). The reign lasted 18 years until 1848. When the Second Republic was founded, Louis

Napoleon, the nephew of Napoleon I, was elected the first president of the Second Republic.

Then he was the Emperor Napoleon III in 1852 by national plebiscite. It was Napoleon III who

commissioned Baron Haussman to redesign Paris and started the French industrial revolution.

(French History Time , 2013)


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Map of French Empire: Napoleon 1769-1795, 1795-1804, 1804-1814 and 1814-1821. This

map shows major battles during Napoleon controlled the empire (France Empire Map,

1999-2013)

19th

Century

In 1870, The Franco-Prussia war began. The Germans conquered Paris and claimed the Alsace

and Lorraine regions of France. Following the defeat, Napoleon III was exiled. In 1871, the

Third Republic emerged in France. It shows that the end of monarchy in France. Industrial

expansion was growing. A portable movie camera was invented. The Eiffel Tower was

constructed during the Universal Exhibition of 1889 in order to commemorate the centennial of

the French Revolution. The Eiffel tower is one of the most well-known monuments in France. In

19thcentury, France is renowned for their cultural contribution includes the paintings of the

Impressionists, the Art Nouveau style, the novelist Flaubert and the satirist Zola. (French History

Time , 2013)


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1871 -- Europe after the Franco-Prussian War

( Europe after the Franco-Prussia War 1871, 2012; French Silent Language , 2013)

20th

Century

In 1914, The First World War began in northeast France. The Germans won many victories but

eventually the Germans and the French dug trenches. The war on the Western Front was

deadlocked in trench warfare. In 1917, The United States entered the war and helped France to

defeat the Germans. The Allies demanded generous restitutions and payments from the Germans

in the Versailles Treaty. The Germans resented the humiliation of this treaty. It was one of the

factors led to the World War II. During the Entre Guerres period (between wars), France played


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a leading role in the avant garde movement, attracting artists, musicians and filmmakers from

around the world. (French History Time , 2013)

World War I

(France - WWI map, 2013)

In 1940, the Germans invaded Paris and occupied the north and west parts of France until 1944.

The country was fully controlled the puppet government of Vichy by Marshal Petain. However, a

resistance movement was being organized by General Charles de Gaulle. The Allied Forces

invaded Normandy on June 6, 1944. Charles de Gaulle entered Paris as the head of the new

government of the Fourth Republic. (French History Time , 2013)


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World War II

(France - WWII Map , 2012)

Post-war (1945Present)

Post-war from the United States and the World Bank enabled France to start an economy, but

Communist-led strikes often crippled production. After a bitter war, France decided to withdraw

from French Indo-China in 1954 and then faced a long and costly struggle in Algeria. Finally,

France ended with Algerias independence in 1962. The problems in Algeria caused problem in

France in the 1950s. In 1958, De Gaulle was appointed to be a prime minister. The government

developed a new constitution, establishing the Fifth Republic. It gave De Gaulle to be the

president greater executive powers and less the power of parliament. The Electoral College

elected De Gaulle as president for a seven-year term. (In Philip's World Factbook , 2008)

In 1957, France became a founder member of the European Economic Community (EEC). De

Gaulle opposed British membership in 1963 because Britain with the United States would give


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too much influence throughout Europes economy. Gaulles popularity declined in the late 1960s

while huge student demonstrations and workers strikes paralyzed the country. Therefore Gaulle

decided to resign as president in 1969. The new successor was Georges Pompidou and he

changed the course in foreign affairs by re-establishing closer contacts with the United States and

supporting the entry of Britain into the EEC (In Philip's World Factbook , 2008).


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Geography

(Geography of France - Wikipedia, the free encyclopdeia , 2013)

Neighboring regions

Western Europe, bordering the Bay of Biscay and English Channel

o Between Belgium and Spain

o Southeast of the United Kingdom,bordering the Mediterranean Sean

o Between Italy and Spain

(The World Factbook , 2013)

Land boundaries

o Metropolitan FranceTotal: 2,889 km


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o Border countries: Andorra 56.6 km, Belgium 620 km, Germany 451 km, Italy

488 km, Luxembourg 73 km, Monaco 4.4 km, Spain 623 km, Switzerland 573

km

o French Guianatotal: 1,183 km

This map shows France has land boundaries: Andorra, Belgium, Germany, Italy, Luxembourg,Monaco, Spain, and Switzerland. (The World Factbook , 2013)

Climate

o Metropolitan France: Cool winters and mild summers, but mild winters and

hot summer along the Mediterranean.

o French Guiana: Tropical climateHot and humid. Very little seasonal

temperature

o Guadeloupe and Martinique: Subtropicalwinds, moderately high humidity.

Rainy season: June to October. Cyclones (Hurricanes) occurred every 8 years.

o

Mayotte: TropicalHot and Humid. Rainy season: November to May innortheastern monsoon. Dry season: cooler weather between May to November

o Reunion: Tropical and sometimes moderates with cool and dry between May

to November. Hot and Rainy between November to April

(The World Factbook , 2013)


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Political Europe Map

(World Atlas - France, 2013)

In France, Political is the republic and a developed country since Post-WWII. France is a

member state of the European Union. France is bordered by: Belgium, Luxembourg, Germany,

Switzerland, Italy, Monaco, Andorra and Spain. Frances politics and government: Unitarysemi-

presidential republic and has three different branches: Legislative, Judicial and Executive. France

has very good human rights: Abortion, Censorship, Declaration of the Rights of Man and of the

Citizen, Gambling, LGBT rights, Prostitution rights and Smoking rights. France has very strong

military. Frances culture is fabulous! Culture of Franceis enriched. Architecture of France,

Arts: Museums, Literature, Music and Theatre, Fabulous cuisines, and so forth. Frances TGV

high-speed trains are excellent for people. TGV Train will transport around France, into

Germany, Switzerland, Italy and the Netherlands and Belgium. France and Germany have strong

trading partner. European trading partners: Germany, Switzerland, Italy and the Netherlands and

Belgium. (Outline of France - Political map, From Wikipedia, the free encyclopedia, 2013 )


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Topographical MapFrance Ski Resorts

(France Tourism/Skiing, 2013-2014)

Topographical MapFrance Tourism

(France Tourism, 2014)


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Natural Resources

(France Natural Resources map, 2013)


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Transportation

TGV Trains

TGV Network:

Red & Blue: High-speed lines

Black: normal lines used by TGVs

Dotted lines: planned for 2009

(Transport in France, 2013)


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Roads

A7 autoroute near Orange French autoroute network


Waterways/Canals

Barge on the Canal Saint-Denis


Marine Transport

Container terminal at Port of Le Havre



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Air Travel

Charles de Gaulle Airport, Paris


Population

Population of the Regions of France(in 1.000s)

(Bonjour La France - France Population , 2013)


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Environmental

(Bonjour La France - France Population , 2013)


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Demographics

Population growth rate %

0.47% (2013 est.)

Map: Population in Germany Germanys population is slow down compared with France.

People in Germany are -0.1% - -2.8% (Smith, The Penguin State of the World Atlas, 2012).

Population

65,951,611 (July 2013 est.)

15-24 years: 11.9% (male 4,017,893/female 3,840,268)



65 years and over: 17.9% (male 5,029,801/female 6,769,989) (2013 est.)

Population pyramid

Dependency ratios

o Total dependency ratio: 56.5%

o Youth dependency ratio: 28.5%

o Elderly dependency ratio: 27.9%

o Potential support ratio: 3.6 (2013)

Median Age

Total: 40.6 years

Male: 39.1 years

Female: 42.1 years (2013 est.)

0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

0-14 years 15-24 years 25-54 years 55-64 years 65 years++

Male

Female


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Birth rate (births/1,000 population)

12.6 births/1,000 population (2013 est.)

Death rate (deaths/1,000 population)

8.96 deaths/1,000 population (2013 est.)

Net migration rate (migrant(s)/1,000 populations)

1.1 migrant (s)/1,000 populations (2013 est.)

Urbanization:

Urban population: 85% of total population (2010)

Rate of urbanization: 1% annual rate of change (2010-15 est.)

Major urban areaspopulation:

Paris (capital) 10.41 million; Marseille-Aix-en-Provence 1.457 million; Lyon 1,456

million; Lille 1,028 million; Nice-Cannes 977,000 (2009)

Sex ratio:

At birth: 1.05 male (s)/female

0-14 years: 1.05 male(s)/female

15-24 years: 1.05 male (s)/female

25-54 years: 1.01 male (s)/female 55-64 years: 0.94 male (s)/female

65 years and over: 0.74 male (s)/female

Total population:

0.96 male (s)/female (2013 est.)

Mothers mean age at first birth:

28.6 (2006 est.)

Maternal mortality rate:

8 deaths/100,000 live births (2010)

Infant mortality rate:

Total: 3.34 deaths/1,000 live births


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Male: 3.67 deaths/1,000 live births

Female: 2.99 deaths/1,000 live births (2013 est.)

Life expectancy at birth (years)

Total population: 81.56 years

Male: 78.45 years

Female: 84.82 years (2013 est.)

Total fertility rate:

2.08 children born/woman (2013 est.)

Contraceptive prevalence rate:

76.4%

Note: percent of women aged 20-49 (2008)

Health expenditures:

11.6% of GDP (2011)

Physicians density:

3.381 physicians/1,000 population (2011)

Hospital bed density

6.6 beds/1,000 population (2010)

Drinking water source:

Improved:

o Urban: 100% of population

o Rural: 100% of population

o Total: 100% of population (2010 est.)

Map: Water Resources in GermanyTotal consumption per capita per year is range 100-499.

In Germany, water withdrawals have 20%-39% approaching strain. It means Germany take more

water out of the ground excessively (Smith, The Penguin State of the World Atlas, 2012).


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Sanitation facility access:

Improved:

o Urban: 100% of population

o Rural: 100% of population

Total: 100% of population (2010 est.)

Map: Waste in RussiaRussia has 50%-74% of population with access to improved sanitation

facilities. Russia has a long way to go (Smith, The Penguin State of the World Atlas, 2012).

HIV/AIDSadult prevalence rate (%)

0.4% (2009 est.)

HIV/AIDSpeople living with HIV/AIDS

150,000 (2009 est.)

HIV/AIDSdeaths

1,700 (2009 est.)

Map: H IV/AIDS in Ukraine- The impact of HIV/AIDS 1.0% -9.9% of people aged 15-49infected with HIV (Smith, The Pengiun State of the World Atlas - Ninth Edition , 2012)

Obesityadult prevalence rate:

18.2% (2008)

Map: Obesity in EgyptEgypt has 70% or more overweight adults aged 20+ years with BMI of25 or more overweight. France only have 10%-24% overweight adults (Smith, The Pengiun Stateof the World Atlas - Ninth Edition , 2012)

Education expenditures:

5.9% of GDP (2009)

Literacy (%)

Definition: age 15 and over can read and write

Total population: 99%

Male: 99%

Female: 99% (2003 est.)


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School life expectancy (primary to tertiary education):

Total: 16 years

Male: 16 years

Female: 17 years (2011)

Unemployment, youth ages 15-24:

Total: 22.1%

Male: 21.2%

Female: 23.2% (2011) (The World Factbook , 2013)

Languages

Frances official language is 100% French; however, its declining regional dialects and

languages include Provencal, Breton, Alsatian, Corsican, Catalan, Basque and Flemish. The

overseas departments are: French, Creole patois, Mahorian (a Swahili dialect) (CIA World

Factbook, 2013)


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Religious

There are four different religions in France. France has a long history with Roman Catholic.

Roman Catholic is 83-88%, Protestant 2%, Jewish 1%, Muslim 5-10%, unaffiliated 4%. There is

no statistic on Buddhism. Overseas departments: Roman Catholic, Protestant, Hindu, Muslim,

Buddhist, Pagan (In Philip's World Factbook , 2008).

Culture

Cultural Diversity

In France, the geography, historical events, foreign and internal forces and groups have changed

over the years. Frances culture consists of beliefs, values, norms and material goods shared by

group members. Paris, France is the first in Europe that has an important role as a center high

culture since the 17thcentury. Two hundred years later, France had an important role worldwide.

Around in the late 19thcentury, Frances role is in cinema, fashion and cuisine. The French

culture is heavily dependent on its economic, political, and military importance. Today, French

culture has remarkable regional and socio-economic differences. According to Hofstedes

88%

2% 1% 10% 4%0%

20%

40%

60%

80%

100%

Roman

Catholic

Protestant Jewish Muslim Unaffiliated

Population

Population


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Framework for Assessing Culture, the culture of France is moderately individualistic and high

Power Distance Index(Culture of France - Wikipedia, the free encyclopedia).

Social Stratification

In France, the modern social structure started in the late 1950s. Its based on three distinct

classes.

The Upper Class: High level politicians, the wealthy families, powerful business owners.

For example, President Jacques Chirac and the CEO of Airbus Noel Forgeard

The Middle Class: the middle class group comprises two different types of white-collar

jobs, senior executives of companies and the groups in the profession jobs. High incomes

are more ore stable.

The Lower Class: The lower class comprises blue-collar jobs: Food-service jobs or work

or retail. The unemployment level and the low living standards are very common in the

group. The number of blue-collar jobs has decreased due to the shift to industry. The civil

service section has increased steadily (Social class in France, Wikipedia the free

encyclopedia , 2013).

Power Distance

Individual vs. Collectivism (Hofstede Cultural Dimensions in France)

Power Distance IndexFrance has a 68 on the cultural scale of Hofstedes analysis.Compared to Malaysia country where their power distance is extremely high (104) whileAustria has a very low (11); therefore, France is in high

Individualism - France is considered as individualistic with a relatively high score (71)on the scale of Hofstede compared to a country like Costa Rica where they have strongcollectivism (15 on the scale)


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MasculinityMasculinity vs. Femininity refers as the roles between the genders. Francehas a masculine culture with a 43 on the scale of Hofstede compared to a country likeNorway where they have lowest masculinity (8 on the scale)

Uncertainty AvoidanceIn France, it has a reasonable high uncertainty avoidance (86)

compared to countries as Singapore (8) and neighboring country Sweden (29)

Long-term OrientationFrance has zero scale compared to a country like Nigeria (16 on

the scale) (Power Distance , 2004-2013)

Silent Language

ColorsColors are an interesting aspect of a cultures silent language. For example, yellow cab

in the United States and red cab in Costa Rica. Etiquette and Customs in Hong Kong, Gold and

red are lucky colors, so they make excellent gift wrapping (Hong Kong - Language, Culture,

Customs and Etiquette, 2013). Another etiquette and customs in Malaysia, do not wrap gifts in

mourning colorswhite, blue or black. Wrapping the gifts in happy colorsred, pink, or yellow

(Malaysia - Language, Culture, Customs and Etiquette, 2013).

DistanceIn France, the meeting and greeting, French people shake hands with everyone

present when they arrive or leave. Men can handshakes with women. When family and close

friends greet one another, they kiss both cheeks (France - Cultural Etiquette - e Diplomat, 2013).

In Hong Kong, the handshake is used when greeting westerners. Hong Kong Chinese handshake

is very light. During the greeting, Hong Kong Chinese lower their eyes as a sign of respect.

Prolonged eye contract should be avoided during the greeting (Hong Kong - Language, Culture,

Customs and Etiquette, 2013).

Time and PunctualityThere are different perceptions and time and punctuality. In the United

States, business people tend to arrive early for business appointment or meetings, and tend to

arrive few minutes late for dinner at someones home and tend to arrive a bit later for large social


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gatherings. Thats so true (International Business - Environmental & Operations , 2013, 2011,

2009,2007). In Costa Rica, they take their time. There is no rush to be on time. If a Costa Rican

couple arrived in the doctors office one hour later instead of on time appointment, it would be

socially acceptable. Its big different between U.S. and Costa Rica.

Body LanguageIn France, French women do not sit with legs spread apart. Sit up straight

with legs crossed at knee or knees together. Feet should never place on tables or chairs.

Toothpicks, nail clippers, and combs are not used in public. Keep your hands out of your

pockets. The okay sign made with index finger and thumb means zero. The French used the

thumbs up sign to say Okay. (France - Cultural Etiquette - e Diplomat, 2013).

PrestigeIn France, French people address other people as Monsieur, Madame or

Mademoiselle. Academic titles and degrees are very important. French people expected to know

how to use them properly. Madame is used for adult women: married or single over 18 years old

except for waitresses is called Mademoiselle (France - Cultural Etiquette - e Diplomat, 2013)

Nonverbal communication is based on facial expression, gestures, dress code, vocal inflections

and so forth. France has different meanings (French Silent Language , 2013). Another country

represents universal meanings.

(International Business - Environmental & Operations , 2013, 2011, 2009,2007)


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High/Low context culture

High-context culture is more important than spoke words. In low-context culture, nonverbal

communication is not very important. The spoken word is everything in the low-context culture.

For example, Finnish and German is in low-context culture while French and African is in High-

context (High/Low-context cultures , 2013).

Country Cluster (According to GLOBE)

There are ten different category country clusters. The different countries share different ideas

about the leadership. It affects domestic business practices. For example, Nordic Europe and

Confucian Asia have reflected on the attitudes of a majority of countries compared to each

cluster. Another example, Costa Rica and Guatemala are in the same category cluster (Country


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Cluster Globe, 2013).

Denmark

Finland

Sweden

Canada

USA

Austraalia

IrelandEngland

South Africa

New ZealandAustria

The Netherlands

Switerland (German

Speaking)

Germany

Isreal

Italy

Switerland (French

Speaking)Spain

Portugal

France

Zimbabwe

Namibia

Zambia

Nigeria

South Africa

Country Clusters- Part I

Nordic

Anglo

Germanic

Latin European

Africian


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Political/Legal

Freedom Type (Freedom House)

France has different Freedom Type: Media Freedom, Internet Freedom, Freedom of Expression,

Human Rights Defense, Civil Society, Rule of Law, Democratic Governance, United Nations,

U.S. Foreign Policy, Elections, Religious Freedom, Freedom of Association, Intergovernmental

Bodies, Womens Rights and LGBTI Rights. U.S.A and France has the same freedoms in

common (Freedom type (Freedom House), 2013).

GreeceHungary

Albania

Slovenia

Poland

Russia

Georgia

Kazakbatan

Turkey

Kuwait

Egypt

Morocco

QatarSingapore

Hong Kong

Taiwin

China

South Korea

Japan

Philippines

Indonesia

Malaysia

IndiaThailand

Iran

Ecuador

El Salvalor

Columbia

Bolivia

Brazil

Guatemala

Argentina

Costa Rico

Venenzela

Mexico

Country Clusters - Part II

Eastern European

Middle Eastern

Confucian

Southeast Asian

Latin American


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Level of democracy

Key:

Full democracies:

9.00-10.008.00-8.99

Flawed democracies:

7.00-7.996.00-6.99

Hybrid regimes

5.00-5.994.00-4.99

Authoritarian regimes:

3.00-3.992.00-2.990.00-1.99
http://upload.wikimedia.org/wikipedia/commons/7/75/Democracy_Index_2012_green_and_red.svg


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Canada, Australia, Norway, Denmark, Finland and Norway category between 9.00 -10.00. USA,

Spain, and Japan category between 8.00-8.99. Brazil, France, South Africa, India, Mongolia

category between 7.00-7.99. Chile, Namibia, Indonesia, Thailand category between 6.00-6.99.

Central America & Turkey category in 5.00-5.99. Egypt, Morocco, Kenya category between

4.00-4.99. Russia and China category in 3.00-3.99. Sudan, Kazakhstan category between 2.00-

2.99. Saudi Arabia, D.R. Congo category between 0.00-1.99 (Democracy Index 2012, 2012) .

Legal System

Civil law system was the legal system; however, there is no legislative act. France developed the

Constitution in September 28, 1958. The effective date was October 4, 1958. It has been amended

many times (CIA World Factbook, 2013).

The three different branches are Executive, Legislative and Judicial. Executive Branch: The Chief of

State is President Franois Hollande has served for France since May 15, 2012. The head of government

is Prime Minister Jean-March Ayrault has served for France since May 16, 2012. The cabinet has council

of ministers appointed by the president at the suggestion of the prime minister. Legislative Branch:

Parliament consists of the Senate has 348 seats; 328 for Metropolitan France and overseas departments.

The members elected by an electoral college to serve six year terms. 1/3 elected every three years. The

National Assembly has 577 seats; 555 for Metropolitan France, 15 for overseas departments and 7 for

overseas dependencies, members elected by popular vote under a single-member majority system to serve

five-year terms (CIA World Factbook, 2013).


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Court System

The Judicial Branch: The Court of Cassation has the court president, 6 divisional presiding judges,

120 trial judges, and 70 deputy judges organized into 6 divisions3 civil, 1 commercial, 1 labor and 1

criminal and Constitutional Council has 9 members. How does the judge selection and term of office

work in the system? The court of cassation judges appointed by the president of the republic from

nominations from the High Council of the Judiciary, presided by the Court of Cassation and 15 appointed

members; judge term of appointment. The Constitutional Council members appointed 3 by the president

of the republic and 3 each by the National Assembly and Senate presidents; members serve 9 year, non-

renewable terms with one third of the membership renewed every 3 years.

(CIA World Factbook, 2013)

Ease of Doing Business (World Bank)

The report summarizes Doing Business 2014 data for France. The table lists the overall Ease of

Doing Business) rank (out of 189 economies) and the rankings by each topic. The tables summarize the

key indicators for each topic and benchmark against regional and high-income economy (OECD)

averages. Economy OverviewRegion: OECD high income, Income category: High income,

Population: 65,696,689, GNI PER CAPITA (US $): 41,750 and City Covered: Paris. FranceDoing

Business 2014 rank is 34. Doing Business 2013 is 35. Change in rank is -3 (declined). FranceDoing

Business 2014 DTF (% Points) is 71.97. Doing Business 2013 DTF (% Points) 71.92. It shows that it has

improved in DTF (% Points) increased 0.05 (Ease of Doing Business in France, 2013)


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Topics DB 2014 Rank DB 2013 Rank Change in Rank

Starting a Business 41 29 -12

Dealing with

Construction

Permits

92 74 -18

Getting Electricity 42 41 -1

Registering

Property

149 150 1

Getting Credit 55 52 -3

Protecting

Investors

80 80 No change

Paying Taxes 52 54 2

Trading Across

Borders

36 37 1

Enforcing Contract 7 7 No change

Resolving

Insolvency

46 44 -2

(Ease of Doing Business in France, 2013)


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Starting a Business

DB 2014 Bank41 DB 2013 Bank29 Change in rank -12

DB 2014 DTF (% Points)

91.43

DB 2013 DTF (% Points)

91.43

Improvement in DTF (%

Points)0.00

(Ease of Doing Business in France, 2013)

Intellectual Property Protection

France has a distinctive system of protection of intellectual and industrial property rights. The three

categories are presented as an intellectual property protection.

Intellectual property rights outside of France

European Union by European Patents

Protection under French Law

(Intellectual Property, 2013)

Nationalization/Privatization

NationalizationThe French Government decided to transfer assets to private individuals. It is required

to vote by Parliament. The recent history has two major waves of nationalization: in 1945-1946 and in

1982. The privatization is established in the following year in 1986-1987. The enterprises are under state

control, therefore their subsidiaries or sub-subsidiaries are separately. Employers have approximately 1.5

million employees. The enterprises have an energy, products, capital goods, and transport, banking,

insurance and commercial services. (France - Nationalization, 2013)


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Privatization

1990s

Total

Renault (1996)The French State still have 15.01% of the shareholding

Credit local de France (1991) now Dexia

Union des assurances de Paris (1994)

Elf Aquitaine privatized in 1994

SEITA (1995) Now Altadis

Arecelor (1995)

Pechiney (1995)

Compagine generale transatlantique (1996) merged with CMA to form CMA-CGM

Assurances Generales de France (1996)

Bull (1997)

Le Credit Lyonnais (1999)

Credit Industriel et Commerical (1998)

CNP Assurances (1998)

Gan (1998)

Erament (1999)

(List of privatizations, from Wikipedia, the free encyclopedia, 2013)

Political Riskiness

Political and Economic -The French economy showed greater resilience to the 2009 downturn than

many comparable economies. It began to recover slowly in 2010. GDP feel to .0.2% in 2012. The growth

is forecast at 0.4% for 2013. Trade remains a major structural weakness of the French economy. The

trade deficit reached of 70 billion (3.5% of GDP) in 2011. High oil prices and inadequacy of domestic

supply has increased imports (Political Riskiness in France, 2013).

Human RightsThe right to strike is protected by the Constitution. There is no restriction

On the right of strike outside of public services. Striking is acceptable action by many French state

Workers. The right is allowed in many domainseducation, hospitals, national radio, etc.


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France and UK have similar levels of gender equality. A Ministry of Womens Rights was

Reestablished by the Hollande administration took office in 2012. Racial hatred and hate crimes

Are banned. The police enforce the law. The government is currently putting legislation to

parliament to extend the right to marry and adopt children to gay couples which is still stiff

Opposition from the Catholic church. France is a founding member of the Council of Europe and

the jurisdiction of the European Court of Human Rights (Political Riskiness in France, 2013)

Bribery and Corruption

Bribery is prohibited! According to Transparency Internationals Corruption Perceptions Index,

France ranked 22

nd

in 2012 (Denmark was 1

st

least corrupt; Somalia was 178

th

most corrupt;

UK was 17th) (Political Riskiness in France, 2013).

Map: Corr uption in SomaliaDenmarkSomalia is very highly corrupt. Denmark is very clean (Smith,The Pengiun State of the World Atlas - Ninth Edition , 2012)

Terrorism Threat

In any other large European countries, the French authorities monitor if there is a high

Threat of terrorism. Attacks can be indiscriminate, including places frequented by expatriates and

Foreign travelers. France operates a five levelcolor coded system to alert the public to

The threat of terrorist operations on French territory as Vigipirate. Level ZeroWhitedenoted

The absence of any indication of a threat, whilst level fourScarletdenotes a certain threat.

Vigipirate is currently at Level 3Reddenoting a probable threat Recently, French military

actions in Mali and Somalia have fears of a backlash by militants in France

(Political Riskiness in France, 2013). The French government established a plan to deal with the threat of

A cyber-attack and carried out a major exercise to test arrangements for crisis management in June 2010.

The British and French authorities has strong co-operation in the effort to combat against terrorist

(Political Riskiness in France, 2013).


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Intellectual Property

Intellectual Property (IP) rightsthey can only give protection in the countries where they are

Granted or registered. There is no single European patent. A European patent is a bundle of

Individual national patents (Political Riskiness in France, 2013).

Influence of Technology

France has a technology revolution. France has lots of technology includes telephone, mobile cellular,

broadcast media, internet country code, internet hosts and internet users.

Telephonesmain lines in use

o 39.883 million (2011)

Telephonesmobile cellular

o 59.84 million (2011)

Telephone system

o General assessment: High developed

o

Domestic: Extensive cable and microwave radio relay: extensive use of fiber-optic cable:

domestic satellite system

International: Country code33 submarine cables provide links throughout Europe, Asia,

Australia, the Middle East, and US; Satellite earth stations. Total of 5 antennas2 for Indian

Ocean and 3 for Atlantic Ocean, Atlantic Ocean region: radiotelephone communications with

more than 20 countries

Broadcast media

o A mix of both publicly operated and privately owned TV stations

o State owned France Televisions operates four networks: One is a network of regional

stations


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o Several cable/satellite channels and international channels

o A large number of privately owned regional and local TV stations

o Multi-channel satellite

o Cable services provide a large number of channels

o Public broadcaster Radio France operates 7 national networks and operates services for

overseas territories and foreign audiences

o Radio France International (RFI) under the Ministry of Foreign Affairs is the leader of

international broadcaster

o

Numerous of commercial FM stations


Government Intervention

Support and subsidies

The French government boosts French car sales by raising subsidies for electric and low-emission

vehicles and penalizing gas guzzlers. The government will also encourage investment in new

technologies and provide a EUR600 million loan package for cash strapped small and medium companies

in the industry. The government will raise the subsidy for electric vehicles to EUR7,000 from EUR5,000,

while it will raise the subsidy for hybrid cars to EUR4,000 from EUR2,000. French Industry states that

the car subsidies will cost the government nearly EUR500 million in 2013. To help finance the

incentives, larger penalties will be levied on purchases of high emission vehicles, which will be approved

in the 2013 budget later this year. In the long term, the government considers to measure to boost French

competitiveness includes a plan to reduce labor costs by shifting the burden of social benefits from

companies to households (Market Watch - The Wall Street Journal, 7/25/2012).


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Sanctions ListFrance Diplomatie

The use of armed force, Security Council sanctions are governed by Chapter VII of the Charter on

action with respect to threats to the peace, breaches of the peace, and acts of aggression. The use of

sanctions, explicitly provided for in Article 41, isenvisaged in the Charter as an alternative (or

preliminary) to the use of force. The Security Council calls upon Member States to apply the necessary

measures to give effect to its decisions. Article 41 thus mentions the complete or partial interruption of

economic relations and of rail, sea, air, postal, telegraphic, radio, and other means of communication, and

the severance of diplomatic relations, which Member States should help implement (France Diplomatie

- Ministere des Affaires etrangeres - Sanctions, 2013).

As sanctions, they can enforce embargoes on weapons and sensitive goods, travel bans and asset freezes.

It means that they can deprive parties of their means of actionweapons embargo during a conflict, ban

on transactions related to proliferation, assets freeze to combat terrorism or to bring pressure on one party

to cooperate. (France Diplomatie - Ministere des Affaires etrangeres - Sanctions, 2013) UN Member

States, the Security Council can decide to establish a sanctions committee, a subsidiary organ of the

Council comprising all Security Council Member States. Meetings are generally held of experts from the

various permanent representations.

A sanctions committee has three main functions:

Adopt new sanctions and update existing ones: A sanctions committee can designate persons,

entities and assets to be subject to sanctions or supplement and update sanctions lists established

by the UNSC

Monitor the proper implementation of the sanctions decided by the UNSC: A sanctions

committee completed and verified the information that UN Member States must bring concern

initiatives taken to apply sanctions


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Clarify the procedures for applying sanctions: A sanctions committee can answer questions

from States about the practical application of sanctions. For example, the State confirms that the

existence of a breach of sanctions will be identified. If necessary, therefore the committee can

request States for information to enable it to respond to a given situations (France Diplomatie -

Ministere des Affaires etrangeres - Sanctions, 2013).

The current number of sanctions committees is twelve. As sanctions regimes have developed, it become

necessary to establish procedures to safeguard the rights of the individuals and entities subject to

sanctions. They monitor the respect of the rights of the person and entities sanctioned(France

Diplomatie - Ministere des Affaires etrangeres - Sanctions, 2013).

International Agreements for Economic IntegrationHistory of the European Union

The European Coal and Steel Community had six founding members: Belgium, France, Germany, Italy,

Luxembourg and the Netherlands. In 1957, the Treaty of Rome established a common market: customs

duties were eliminated in 1968 and common policies include trade and agriculture put in place. In 1973,

it expanded to nine members: Denmark, Ireland and the UK. In 1979, it created its first Parliament. In

1981, Greece joined. Then the following by Spain and Portugal in 1986.

In 1993, the Treaty of Maastricht established the European Union common market. Two years later, the

EU expanded to 15 members: Austrian, Sweden and Finland. In 2004, EU expanded to 25 members:

Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania,

Slovakia and Slovenia (European Intergration, From Wikipedia, the free encyclopedia, 2013).

The Eurozone refers to the European Union member states that have adopted the euro currency union as

the third stage of the European Economic and Monetary Union (EMU). The states outside of the EU have

adopted the euro as their currency even though it was not belonging to the EMU. The total of 23 states

includes 17 European Union states and six non-EU members currently use the euro. The original


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members: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands,

Portugal, and Spain. In January 1, 2001, Greece adopted the euro. In January 1, 2007, Slovenia joined on

the euro. In January 1, 2008, Cyprus and Malta joined the euro. In January 1, 2009, Slovakia joined the

euro. In January 1, 2011, Estonia joined the euro (European Intergration, From Wikipedia, the free

encyclopedia, 2013).

(European Intergration, From Wikipedia, the free encyclopedia, 2013)

France is a member State of the European Union. France is involved with European Economic Area,

Schengen Agreement, EMU (Euro) member, and is on Common Security & Defence Policy (European

Intergration, From Wikipedia, the free encyclopedia, 2013).


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Infrastructure

Communication

Telephonesmain lines in use:

o

39.29 million (2012) Telephonesmobile cellular:

o 62.28 million (2012)

Telephone system:

o General assessment: Highly developed

o Domestic: extensive cable and microwave radio relay; extensive use of fiber-optic cable;

domestic satellite system

o International: country code33; numerous submarine cables provide links throughout

Europe, Asia, Australia, the Middle East, and US: satellite earth stationsmore than 3(2

intel sat (with total of 5 antennas2 for Indian Ocean and 3 for Atlantic Ocean, NA

Euteisat, 1 InmarsatAtlantic Ocean region); HF radiotelephone communications with

more than 20 countries

o Overseas departments: country codes: French Guiana594; Guadeloupe590; Martinique

596; Mayotte262, Reunion262 (2011)


Energy

Electricityproduction:

539 billion kWh (2010 EST.)

Electricityconsumption:

451.4 billion KWh (2009 EST.)

Electricityexports


Electricityimports


Electricityinstalled generating capacity:

119.1 million KWh (2009 EST.)

Crude oilproduction

0 bbl/day (2009 EST.) Crude oilexports:

0 bbl/day (2009 EST.)

Crude oilimports:

1.428 million bbl/day (2009 EST.)

Refined petroleum productsproduction:

1.694 million bbl/day (2009 est.)


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Refined petroleum productsconsumption:

1.792 million bbl/day (2011 est.)

Refined petroleum productsexports:

487,200 bbl/day (2009 est.)

Refined petroleum productsimports:

778,400 bbl/day (2008 est.)

Natural gasproduction:

587 million cu m (2011 est.)

Natural gasconsumption:

41.52 billion cu m (2011 est.)

Natural gasexports:


Natural gasimports:


Carbon dioxide emissions from consumption of energy:

395.2 million Mt (2010 est.)


Military branches (Security)

Army (Armee de Terre; includes Marines, Foreign Legion, Army Light Aviation), Navy (Marine

Nationale), Air Force (Armee de lAir (AdiA); includes Air Defense) (2011)

Military service age and obligation:

17-40 years of age for male and female voluntary military service (with parental consent); no

conscription: 1-year service obligation; women served in noncombat posts (2013)

Manpower available for military service:

Males age 16-49: 14,563,662

Females age 16-49: 14,238,434 (2010 est.)

Manpower fit for military service:

Males age 16-49: 12,025,341 Females age 16-49: 11,721,827 (2010 est.)

Manpower reaching militarily significant age annually:

Males: 396,050

Females: 377,839 (2010 est.)


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Military expenditures:

2.6% of GDP (2005 est.)


Telecommunication

Broadcast media

o Mixed of both publicly operated and privately owned TV stations

o State-owned France Television operates 4 networks,

o Several thematic cable/satellite channels and international channels

o A large number of privately owned regional and local TV stations

o Multi-channel satellite and cable services provide a large number of channels

o Public broadcaster Radio France operates 7 national networks

o A series of regional networks

o

Operates services for overseas territories and foreign audiences

o Radio France Internationale (RFI)

o Under the Ministry of Foreign Affairs

o A large number of commercial FM stations

Internet country code:

o Metropolitan France

o French Guiana

o Guadeloupe

o Martinique

o

Mayotteo Reunion

Internet hosts:

o 17.266 million (2012)

Internet users:

o 45.262 million; 44.625 million (metropolitan France) (2009)


Economic OverviewThe French economy is diversified across all sectors. The government is regulated partially or fully

privatized many large companies includes Air France, France Telecom, Renault, and Thales. At the

meantime, the government has a strong sectors includes power, public transport, and defense industries.

Millions of tourists visited France from all over the world. France has the third largest income in the


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world from tourism. Frances leaders committed to capitalism. The French government runs the social

equity by means of laws, tax policies, and social spending that the government wants to reduce income

disparity and the impact of free markets on public health and welfare (CIA World Factbook, 2013).

GDPper capita (PPP)

Frances total GDP (2012) is $36,100 per capita

Retrieved 11/2/2013 fromhttps://www.cia.gov/library/publications/the-world-

factbook/geos/fr.html

Germanys total GDP (2012) is $39,700 per capita



France

GDPreal growth rate is 0% (2012 est.)

o

4% (2010 est.) is exceed 3% of GDP

o 3.1% (2011 est.) is a bit over 3% of GDP

o 0.7% (2012 est.) is much better and lowest than 3% of GDP

Retrieved 11/19/2013 fromhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.html

Cuba

GDPreal growth rate is 3.10% (2012 est.) Its exceed 3% of GDP Retrieved 11/19/2013 fromhttps://www.cia.gov/library/publications/the-world-


Exceed 3% of GDP is not good economic in the country. Deficits declines in tax revenues and increase

social spending such as unemployment benefits. Budget deficits set a goal to keep below 3% of GDP.
https://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.html


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Therefore budget is high deficit, because of declines in tax revenues and increase social spending.

Switzerland

GDPreal growth rate is 1.0% (2012 est.) Its below 3% of GDP


Switzerland has 1% of GDP. Its below 3% of GDP. Its good economic and good budget deficits.

Switzerland increases in tax revenues and decreases social spending. Its big difference between Cuba

and Switzerland.

Distribution of family incomeGINI index:

France: 32.7 (2008)


Sweden: 23.0 (2005)


GINI coefficient of Income Inequality

France has no data on GINI coefficient of Income Inequality. France finances are very strong, has a high

income. France has been wealthy and has maintained a good economic since World War II, Frances

GDP (current US$) $2.613 trillion in 2012. France aids the governments in developing countries reduce

poverty by providing them with money and technical expertise they need for a wide range of projects

such as education, health, infrastructure, communications stands for OECD (World Bank, 2013).
https://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.html


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Emerging market

A 14% increase in the value of new business in the first months of year, driven by strong performances in

France and in emerging markets. The value of new business grew 33% in France, while AvivasTurkey,

Poland and Asia divisions all posted gains of more than 40%. It reflects on the companys drive to grow

in emerging markets. The company guidance that the value of new business will moderate in the final

quarter due to a strong performance in the same period last year (Aviva's New Business Gains on Strong

Growth in France, Emerging Markets , 2013).

Exports and Imports

Frances excellent balance in exports and imports includes commodities and partners from other

countries with clearly statistics from the CIA World Factbook. The exports earned $567.1 billion in 2012

The top partners in order are Germany 16.7%, Belgium 7.5%, Italy 7.5%, Spain 6.9%, UK 6.9%, US 5.6

% and Netherlands 4.3%. The exports shows strong economic partner from other countries (CIA World

Factbook, 2013).

16.70%

7.50%

7.50%

6.90%

6.90%

5.60%

Exports - Partners

Germany

Belgium

Italy

SpainUK

U.S.A.


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Frances exports commodities:

Machinery

Transportation equipment

Aircraft

Plastics

Chemicals

Pharmaceutical products

Iron & Steel

Beverages


The imports earned $641.3 billion in 2012. The top partners in order are Germany 19.5%, Belgium

11.3%, Italy 7.6%, Netherlands 7.4%, Spain 6.6%, UK 5.1%, and China 4.9%. The imports exports

shows strong economic partner from other countries (CIA World Factbook, 2013).

19.50%

11.30%

7.60%

7.40%

6.60%

5.10%

4.90%

Imports - Partners

Germany

Belgium

Italy

NetherlandsSpain

UK

China


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Frances imports commodities:

Machinery and equipment

Vehicles

Crude oil

Aircraft

Plastics

Chemicals


Natural Resources

o Metropolitan France: Coal, iron ore, bauxite, zinc, uranium, antimony, arsenic, potash,

feldspar, fluorspar, gypsum, timber, fish

o French Guiana: Gold deposits, petroleum, Kaolin, Niobium, Tantalum, clay


Geographical considerations

The French refer to their nation as a hexagon, because the description of nation is six-sided shape.

The term is a symbol for the country. In France, metropolitan has an area of over 200,000 square miles

(518,000 square kilometers). It covers 5% of the European continent. Paris is the capital and cultural

center and is long dominating the rest of the nation. There are twenty-two regions. The French Republic

includes four overseas departments: French Guiana, Guadeloupe, Martinique, and Runion. There are

two territorial collectives: Mayotte and Saint Pierre-et-Miquelon. The overseas territories include French

Polynesia, New Caledonia, Wallis, and Futuna. France borders: Andorra, Belgium, Germany, Italy,

Luxembourg, Monaco, Spain and New Switzerland. France is open to the Atlantic to the west, coasts on

the Mediterranean Sea to the south and the English Channel to the north. France has a large range of

terrain and a varied climate and geography. The major mountains are the Alps in the east and the


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Pyrenees in the southwest. The Massif Central is a large mountainous plateau in the central area includes

the ancient volcanoes of the Auvergne region. The Mediterranean area is considered to have a subtropical

climate. The four main rivers are the Seine, the Loire, the Garonne, and the Rhne. The territory has

regional names and is connected to regional identity. The most famous is le Mistrial in the Rhne valley

(France: Geography, History, Politics, and More, 2013).

Competition

Domestic industries and products (absolute advantage)

In 1776, Adam Smith states that a countrys wealth is based on the goods and services available to all

citizens rather than holding gold. The theory of absolute advantage: Different countries produce some

goods more efficiently than others. The question is why the country should buy domestically produced

goods when they can buy them cheaper from abroad (Daniels, International Business - Environmental &

Operations , 2013, 2011, 2009,2007).

Competitive advantage (Porters diamond)

The Diamond of National Competitive Advantage: Factor conditions, Demand conditions, Related and

supporting industries and Firm strategy, structure, and rivalry. According to the Diamond Model, there

are four determinants of national advantage for French wine industry.

Factor conditions: French wine industry has sufficient quantities and combination of the quality

of labor, capital and raw materials available.French wine industry has perfect climate and good

soil to grow different kinds of grapes for making wine. French wine industry will hire workers to

take care of land for growing grapes, etc.

Demand conditions: In France, the consumers will definitely purchase wine, because of high

quality of wine. You cant compare with other wine industry in difference countries.


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Related and supporting industries: The French wine industry was also favorable, because of

the high quality to all consumers in France. French wine will be exported to other countries for

trade.

Firm Strategy, Structure, and Rivalry: The combination of three features: demand, factor

conditions, and related and supporting industries. French wine influenced industries decision to

production of wine in France. The ability of the industries to develop and sustain a competitive

advantage required favorable circumstances for the fourth feature: firm strategy, structure and

rivalry.

Global Market Share

OECD issues warning on French economy, because France is behind other European countries based on

the economy. It needs to take steps to restore competitiveness. It shows that France shows no significant

improvement since the onset of the financial crisis in 2008. Frances high minimum labor costs (80

percent above the OECD average); high cost of public services (27.4 percent of gross domestic product),

heavy tax burden on employment (50 percent of wage costs) and central and local government includes

36,700 municipalities among the factors holding back French competition. It shows that earnings per

head in France had grown slower than in other advanced OECD countries. The economic growth has

been below the OECD average and levels of employment, expectations among young and older workers

are low. The governments move to give companies a C20bn tax break to lower labor costs; however, the

half of the gap between the tax wedges in France the different between labor costs to the employer

and the employees home-home payand the OECD average (Camegy, November 13, 2013).


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Multinational Enterprises

The 2013 Top Companies to work for in France. France has more than 500 employees. First ten top

for best companies in world, according to best workplaces France. The following of the ten tops:

Microsoft France (Information Technology Software), Pepsi Co France (Retail), Mars France (Mars

Chocolat, Petcare and Food & Mars Information services), Davidson Consulting (Professional Services

Consulting Engineering), Decathlon France (RetailSpecialty), Leroy Merlin France, EMC (Information

Technology), Cisco France (Telecommunications), American Express Carte (Financial Services &

Insurance) and Valrhona (Manufacturing & ProductionFood products) (Best Workplaces in France -

Great Place to Work Institute , 2013)

Major MNEs

France is one of the EUs major importers and exporters with everything from raw commodities to

automobiles. The economy of France provides support to international trade with numerous of products

and commodities. The exporters have a number of valuable commodities: machinery and transportation

equipment, aircraft, plastics, chemicals, pharmaceuticals, iron, steel, consumer products, petroleum, cars

and vehicles. The major part of the foreign trade with European partners: Germany, UK, Spain and Italy.

France is the second largest exporter in the world of both services and farm products. France is well

known for its cheese, wine, and wheat for the worlds leading supplier of quality produces. The

manufacturing industry is a key exporter. The GDP is nearly 27%. (Global Alliance of SMEs (GASME),

2013).


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GNIper capita

Inflation rate (consumer prices)

France: 2.2% (2012 est.)


Germany: 2.10% (2012 est.)


Unemployment rate:

France: 10.3% (2012 est.)


Turkey: 9.2% (2012 est.)



Debtexternal

France: $5.165 trillion (31 December 2012)


Germany: $5.719 trillion (31 December 2012)

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Balance of Payments (Current)

France: -$58.7 billion (2012 est.)



Italy: -$30.3 billion (2012 est.)


Balance of Payments (Capital)

Stock of direct foreign investmentat home

o France: $1.119 trillion (31 December 2012 est.)



o Belgium: $1.082 trillion (31 December 2012 est.)



Stock of direct foreign investmentabroad



o Hong Kong: $1.217 trillion (31 December 2012 est.)


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Interest Rates

France Interest Rate

(Trading Economic - France Interest Rate, 11/20/2013)

Stock Market

France Stock Market (CAC 40)

Stock in France had a negative performance during the last month. France Stock Market (CAC 40)declined 14 points or 0.32 percent during the last 30 days. (Trading Economic - France Interest Rate,11/20/2013)

(Trading EconomicFrance Stock Market, 11/20/2013)


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Factor-Mobility

WorldwideThe United States had about 1/3 the ratio of mobility of Denmark. Less than half that of

Canada, Finland and Norway. France, Germany, Sweden have higher mobility, with only the United

Kingdom being less mobile. Economic mobility in developing nations such as Africa is to limited by both

historical and global economic factors. Economic mobility is everywhere correlated with income and

wealth inequality (Factor Mobility - Wikipedia, the free encyclopedia, 2013).

Factor-mobility

Factor Mobility bar chart shows the rate of intergenerational income mobility in different countries. The

vertical intergenerational mobility is lower in the United States than in most developed countries. A

personsparents are high income in the United States than other countries. The United States had about
http://upload.wikimedia.org/wikipedia/commons/c/c7/Intergenerational_mobility_graph-1.jpg


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1/3 the ratio of mobility of Denmark and less than half in Canada, Finland and Norway. France had

higher mobility with only the United Kingdom being less mobile. Economic mobility in Africa is limited

to both of historical and global economic factors. Economic mobility is correlated with income and

wealth inequality (Economic Mobility From Wikipedia, the free encyclopedia, 2013).

Financial Viability

Balance Payments

o France: -$58.7 billion (2012 est)


o Belize: - $59.5 billion (2012 est)


Balance of Payments (Current)

France: -$58.7 billion (2012 est.)


Italy: -$30.3 billion (2012 est.)


Balance of Payments (Capital)

Stock of direct foreign investmentat home


https://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.htmlhttps://www.cia.gov/library/publications/the-world-factbook/geos/fr.html


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o Belgium: $1.082 trillion (31 December 2012 est.)


Stability of currency

Deficit must not exceed 3% of GDP. Rate of inflation must remain within 1.5% of the three best-

performing European Countries.

France

GDPreal growth rate is 0% (2012 est.)

o 4% (2010 est.) is exceed 3% of GDP

o 3.1% (2011 est.) is a bit over 3% of GDP

o 0.7% (2012 est.) is much better and lowest than 3% of GDP


factbook/geos/fr.htmlCuba

GDPreal growth rate is 3.10% (2012 est.) Its exceed 3% of GDP Retrieved 11/19/2013 fromhttps://www.cia.gov/library/publications/the-world-


Switzerland

GDPreal growth rate is 1.0% (2012 est.) Its below 3% of GDP Retrieved 11/19/2013 fromhttps://www.cia.gov/library/publications/the-world-


Banking systemStable/Reliable

In 2008, numerous of banks failure in the financial crash. It led to the recessions and depression in

different countries. There are two failure factors: Some bank does not have enough assets to meet their
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liabilities and those people who ran, regulated them and failed the bank system. Because they did not do

their jobs properly. Unfortunately, the top bankers still earns largely salaries and bonuses. Frances bank

wealth has high gross national income (GNI) compared with Bank of America annual revenue of $134

billion. The comparative wealth (2010): France has $2.3tn for country GNI. France has $8.2tn for assets

of top banks (The Penguin State of the World Atlas, 2012).

Map: Banks in Spain and USASpain has $1.5tn for country GNI. USA has $14.6tn for country GNI.

Both of them has big different GNI. (Smith, The Pengiun State of the World Atlas - Ninth Edition , 2012)

In conclusion for the S.W.O.T. Analysis, the research paper is based about Frances global business

throughout different issues. The S.W.O.T analysis will show four points: strength, weakness, opportunity

and threat. S.W.O.T analysis is relevant to demonstrating Frances global business in strength, weakness,

opportunity and threats. The S.W.O.T analysis is enabled to understand about the economy and

represents as European Union throughout worldwide. Frances has been wealthy and has maintained a

good economic since World War II. Frances finances are very strong. France is high income. Frances

GNI is larger than revenue of any transnational corporation. Income GNI is $25,000 or more in France.

Quality of Life is high Hum

france research paper - global business

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