DOING BUSINESS IN FRANCE

Doing Business in France

Doing Business in France

Introduction

Doing business abroad brings with it cross cultural challenges. Prior to travelling to another country it is the norm not to consider factors such as differences in etiquette, business practices, negotiation techniques and business protocol. However, it is precisely these areas one should be addressing before doing business abroad if the success of the trip is to be given a better chance. This report will help to doing business in France is offered as an introductory guide to some of the above mentioned areas where cultural differences can impact business proceedings. It is in no way a comprehensive summary of all 'doing business tips' nor meant to stereotype the French. Rather, it highlights some important key areas for consideration when doing business in France.

Overview

France is a leading economic, technological, cultural, communications and transport centre both within Europe and internationally. It is a large, affluent country of 62.4 million people that prides itself on its uniqueness and place in the world. France has the world ' s fifth largest economy, and ranks in the world ' s top four in terms of international direct investment and exports and imports. Attesting to France ' s attractiveness to foreign investors, more than 500 foreign companies established an office in the Ile-de-France region in 2004 (only London attracted more foreign businesses). France matches a growing services sector with a diversified industrial base and substantial agricultural resources. Services account for 71 percent of GDP and agriculture for 3 percent, while industry generates 26 percent of GDP and more than 80 percent of export earnings.

The government retains considerable influence over key segments of each sector with majority ownership in railway, electricity, aircraft and telecommunications firms (the state has part- ownership of around 1,300 companies in France). However, it has gradually relaxed its control over these sectors from the early 1990s onwards, privatising since that time an unprecedented number of public companies. Large tracts of fertile land and the application of modern technology and subsidies have combined to make France the leading agricultural producer in Western Europe. Many of France ' s traditional export products (cheese, wine, perfume and apparel) have a worldwide reputation as luxury goods. France is also a leader in the development of nuclear technology, and was chosen in 2005 as the site for the 4.57 billion euro Iter complex, where scientists will carry out experiments in nuclear fission to develop what specialists are hailing as the renewable energy of the future.

Communications

The Ministry of Transportation and Communications is the entity in charge of regulating the transportation services, roads, as well as communications nationwide. It looks for rational land use planning in relation to the areas of resources, production, markets and populated areas by regulating, promoting, executing and supervising the transportation and communications infrastructure. A number of mass media, such as the press (newspaper and magazines), radio, (digital, satellite, cable) television, books, etc., are used to maintain people informed about political, economic ...