Say “Oui” To France Nicole Outen Lameka Fields /20/12

Objectives  Brief History  General (Economic & Demographic)  Economy Structure  Role in Global Business  Factors  Opportunities  Conclusion

Brief History  The Celtic Gauls were the first inhabitants of France in 1500 and 500 BC. By 52 BC, they lost the territory to Julius Caesar and in the 5th century, the Franks (thus 'France') and other Germanic groups took over the country  Napoleon is still remembered as a hero because of his constitutional and legal policies and reforms.

Geopolitical Imperatives  Secure a Larger Hinterland  Always look East  Maintain influence in Regions beyond Europe  Flexibility

General ECONOMICDEMOGRAPHIC  France has the fifth largest economy in the world by nominal figures, and by PPP figures ninth largest  The Gross Domestic Product per capita in France was last reported at US dollars in 2011, according to a report published by the World Bank. The GDP per Capita in France is equivalent to 186 percent of the world's average.  Population: 64,768,389  Religion: Roman Catholic  Language: French  Ethnic Groups: 8% of the population is Italian  Education (Literacy): age15 and over can read and write  Life Expectancy: total population is 81 years old

Structure of the Economy  France has a mixed economy of Capitalist and Socialist  Capitalist: private ownership of capital and other means of production  Socialist: gov’t directs economic activity and owns all or part of most industries  Key Sectors:  Agricultural: Totaling more than 7% of French exports, it is one of the few sectors to have a trade surplus and helps to limit the weakening of the trade balance  Industrial: (Manufacturing sector) which develops products ranging from consumables to items related to the automobile industry, electronics and intermediate goods

Role in Global Business Exports: totaled $456.8 billion  Machinery and transportation equipment and aircraft  Plastics, chemicals and pharmaceutical products  Iron and steel  Beverages  Imports: totaled up to $532.2 billion  Machinery and equipment  Vehicles and Aircraft  Crude oil  Plastics and Chemicals

Risk Factors  France is a CRT-1 country with low levels of risk  Economic (Very Low level): Economic growth remains sluggish under the pressure of tighter fiscal policies and a worsening labor market. Growth is forecasted to remain between 1% and 2% for the next number of years. France is targeting a budget deficit of 3% of GDP by 2013 which will be a challenge due to slow growth and lower tax revenues  Political(Low): The lack of labor flexibility in France is one obstacle that must be overcome to improve economic efficiency. Government spending accounts for more than 50% of domestic output which has caused a deterioration of public finance.  Financial (Very Low): In August 2010, the French government authorized the merger of the banking and insurance regulator into the Prudential Control Authority (ACP).

Opportunities  U.S. exports to France include industrial chemicals, aircraft and engines, telecommunications, computer software, and computers  On average, over $1 billion in commercial transactions, including sales of U.S. and French foreign affiliates, take place every day  The United States is the top destination for French investment and the United States is the largest foreign investor in France.

Why Say Oui to France?  A competitive, open leader  A haven of talent and high productivity  A pioneer in innovation and R&D  World-renowned quality of life