INFORMATION ABOUT FRANCE

-- APPROACHING FRANCE
France, the fourth largest economy in the world, is an ideal venue from which to conquer the European market. The European Community now counts ten more countries and represents 40% of the world Trade and 450 millions consumers. Situated in the middle of these countries, it enjoys genuine economic stability and a strong international reputation in key industrial sectors. With it numerous advantages, France offers a favourable environment to business.
GLOBALISATION OF THE ECONOMY
 
DIRECT FOREIGN INVESTMENT
 

The French economy is open to trade and investment.

In 2003, France had 36,6 billions euros of incoming Foreign direct investments and 48,6 billions euros outgoing foreign direct investments France welcomes foreign direct investments totalling in 2002 , 310 billions US$ (against 100 billions US $ in 1990) in 2002. France is the first place in Europe for incoming foreign investments. The sharp decrease of investments coming into Great Britain over the last two years explain this position. 75% of capital flow used to come from the European Union. Germany was then placed on 4th position and has now reached the first rank of investors in France and is today ahead of Great Britain.

Indeed, investors appreciate the quality of the French workforce, the high level of research, the mastery of high technology, stability of the currency and a good control of production costs.

In addition, the rate of corporate taxation (with a basic rate of 33.3%) is only 3% of GDP just behind the United States (2.4%) but ahead of Great Britain (3.7%) (Source: World Competitiveness Report, 2002). A study produced by Healer-Baker in 2002 placed Paris in second position after London as a location for European activity. A total of more than 8 000 foreign companies have chosen France.

With 465 billion Euros invested abroad in 2000, France occupies third position behind the United States and Great Britain. 90% of these investments are made in industrial countries, principally in the European Union. Two thirds of these investments result in acquisitions of companies outside of the Euro Zone. The remaining third are portfolio investments.

 

 
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To help you in your steps to further commercial development in France: Contact the French Chamber of Commerce in your country.