5. 1.9%
strong competition for market share in all
French industrial and service sectors.
American exporters to France generally
face more competition from European
companies than from Asian ones
6. France: Economy
tourism and the traditional luxury products (leather goods, ready-to-wear
fashion, perfumes, fine wines and spirits, etc.).
Agriculture was one of France's major industries. France is still a
leading producer of wine.
France is the second-largest trading nation in Western Europe (after
Germany). France ran a $92.7 billion trade deficit in calendar year
2011. Total trade for 2011 amounted to $1,236 billion, 61% of which
was with EU-27 countries.
France is a member of the G-8 (and instigator of the G-20), the European Union, the World Trade
Organization and the OECD, confirming its status as a leading economic player in the world.
investment regulations are simple
Number of international patents: France ranks 2nd in Europe
and 5th worldwide
7. France: Economy
French business is currently burdened by the world's
highest level of payroll tax (cotisations sociales),
which at 43% are far higher than in any other country.
The next highest rates are found in Spain and the
Czech Republic (30%), while businesses in the UK
pay a payroll tax (NI contributions) of just 11%, and
those in the USA just 5%.
In recent years, its reconciliation and cooperation with
Germany have proved central to the economic
integration of Europe, including the introduction of a
common exchange currency, the euro, in January
1999.
8. France: Economy
French state has maintained an above-average ability to intervene in
economic affairs, remaining a major shareholder in utilities such as EDF
where it has a majority holding, or France Telecom (Orange), in which it has
a 27% holding.
The French state - which for most of this time was in the hands of
Conservatives - played an active role through the establishment of a series
of four year plans (Contrats de plan), whereby the state set economic targets
and economic priorities, but left it up to private enterprise to achieve or apply
them. For example, the rapid development of the French motorway system
was achieved (and is still being achieved) by public investment offset by the
sale of long-term concessions to private or semi-private companies to
operate and maintain them.
9. A HIGHLY QUALIFIED
WORKFORCE
Regarding its labor market, France has one of the highest levels of graduates, and the
highest number of science graduates per 1000 workers of any European country.
France is ranked #1 for young employees with science degrees in Europe, and #2 in the world
Unemployment rate 9.3% in 2011.
Foreign investors say they are attracted to France by its skilled and productive labor
force, good infrastructure, technology, and central location in Europe. France’s EU
membership and usage of the euro facilitate the easy movement of people, services,
capital and goods.
New incentives to earn more: exemption from tax and social
security contributions on overtime hours
More room to negotiate work hours: greater flexibility for
overtime hours; raised limit for management staff to 235 work
days from 218
A more flexible labor market: a new type of work contract with
extended trial period; new procedure to terminate a contract out of
court
POSITIVE LABOR REFORMS
10.
11.
12. Market Entry Strategy
products and services in France is similar to the
approach in the U.S.
The French market for food products
13. Market Challenges
tax environment
high cost of labor
rigid labor markets
occasional negative attitudes toward foreign
investors
French firms have stated a preference for working
with French and European rather than U.S. firms.
state intervention
14. France: Economy
France was the first country in the world to propose, plan
and set up a dedicated high-speed rail network; today the
country can boast the world's most extensive high-speed
rail network, one which runs without interruption from the
North Sea to the Mediterranean, and east-west from near
the German border to the lower reaches of the Loire.
State intervention in the automotive sector has helped
Renault become one of the main world players; the
French government still holds a 15% stake in Renault
which, in turn, is the leading investor (almost 45%) in
Nissan.
15. France: Economy
Since 2007, France like other countries has had
to adapt to new global economic realities. It is
doing so through measures designed to
modernize its economy; but modernization in
France is often a difficult process.
16. Globalization vs.
National Responsiveness
Advertising
French
Avoid reasoning or logic
Advertising predominantly emotional, dramatic,
symbolic
Spots viewed as cultural events – art for sake of
money – and reviewed as if they were literatures or
films
17. Differences Across Cultures
In criteria used to evaluate personnel
Netherlands France Germany Britain
Reality Imagination Leadership Helicopter
Analysis Analysis Analysis Imagination
Helicopter Leadership Reality Reality
Leadership Helicopter Imagination Analysis
Imagination Reality Helicopter Leadership
20. Cultural Differences in Selected
Countries and Regions
Doing business in France
1. When shaking hands with a French person, use
a quick shake with some pressure in the grip.
2. It is extremely important to be on time for
meetings and social occasions. Being
“fashionably late” is frowned on.
3. During a meal, it is acceptable to engage in
pleasant conversation, but personal questions
and the subject of money are never brought up.
4. Visiting businesspeople should try very hard to
be cultured and sophisticated.
21. Cultural Differences in Selected
Countries and Regions: France
5. The French tend to be suspicious of early
friendliness in the discussion and dislike first names,
taking off jackets, or disclosure of personal or family
details.
6. In negotiations the French try to find out what all of
the other side’s aims and demands are at the
beginning, but they reveal their own hand only late in
the negotiations.
7. The French do not like being rushed into making a
decision, and they rarely make important decisions
inside the meeting.
8. The French tend to be very precise and logical in
their approach to things, and will often not make
concessions in negotiations unless their logic has
been defeated.
22. Four Cultural Types
2. Eiffel Tower:
Strong emphasis on hierarchy and
orientation to task
Jobs well defined; coordination from top
Culture narrow at top; broad at base
Relationships specific and status remains
with job
Few off-the-job relationships between
manager and employee
Formal hierarchy is impersonal and efficient
25. Results by Sector – Digital
For digital operations offers the lowest
Transportation costs lower
effective corporate income tax rates.
26. Results by Sector – Results by Sector Results by Sector –
Research and – Corporate Manufacturing
Development Services
R & D : lowest effective
tax rates
27. LEGAL
LEGAL STRUCTURES
Société anonyme (SA)
A minimum of seven shareholders is required
A compulsory form for French listed companies
Société par actions simplifiée (SAS)
Can be established with a single shareholder
Flexible organisation
Well suited for holding companies and foreign companies
wishing to maintain a 100 % control on a subsidiary
Société à responsabilité limitée (SARL)
Can be established with a single shareholder
No minimum capital required
No need of legal auditor
28. One-stop shop for legal and tax, and low
expenses for the administrative formalities
Speedy registration process
