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FRANCE & U.S. FIRMS.
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Overview of nation in context of Amer. business expansion: politics, demographics, labor, tariffs, barriers, laws.... More...
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Paper Abstract:
Overview of nation in context of Amer. business expansion: politics, demographics, labor, tariffs, barriers, laws.

Paper Introduction:
Introduction One of the oldest countries in Europe, France has long been a key trading partner with other nations, particularly those in Western Europe and North America. The nation was once a significant colonial power, but its colonies have largely gained independence. Today, France is seen as one of the more important markets within the EU, and American companies considering expanding operations to France need to evaluate the political, demographic and business environment within France before making the commitment to market there. This research considers these factors in today's environment. Politics France was one of the first European nations to move from a feudal society into a nation-state, and its monarchy lasted for centuries. There was a pop

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Woodruff, D. 5). Murphy, C. Departmentof State. Although French unions are considered to be powerful, membership inunions has declined to approximately half of that in the United States.However, French law is much more rigorous about the relationship whichexists between unions and employers than American law. The 6 percent European/4 percent French quotas are applicable throughout the day, as well as duringprime time slots. 3). Interest rates. Demographics France is composed of three basic ethnic groups: Celtic, Latin andTeutonic, and the nation has a traditionally high level of immigration.Most (more than 9 percent) of the population is Roman Catholic, but thereare also significant Protestant and Jewish minorities. Tariff preferences arealso extended to more than one hundred developing countries under theGeneralized System of Preferences (GSP). In 1998, US-France trade totaled approximately $47 billion(not including services). (1999, November 17). 4). 4. 2). Agricultural product imports are covered by the CommonAgricultural Policy (CAP), under which many items are subject to variablelevies designed to equalize the prices of imported commodities with thoseproduced in the EU (Venkitaramanan, 1999, n.p.). Thecommittee is also entitled to the same information provided toshareholders, and is funded by the company in order to facilitate programswhich benefit all employees. Just as companies in the UnitedStates face collective bargaining agreements with unions, the sameenvironment exists in France, although many consider the French unions tobe particularly strong and willing to use the strike earlier than theirAmerican counterparts (Country Commercial Guide, 1999, p. Wall Street Journal Europe, p. Airports, railroads and seaportsare modern and able to facilitate modern cargo handling methods. The French government has recently revised its legal services system.Non-EU lawyers may no longer practice as legal consultants and are requiredto qualify as "avocats," on the basis of full-fledged membership in theFrench bar. Venkitaramanan, S. Conclusion France is an attractive market for American companies because it is acountry which does not have significant trade barriers, because its workforce and consumers are highly educated, and because its political systemis stable. References Background Notes: France. As with other industrial nations,there are labor laws which govern the fundamental relationship betweenemployee and employer; in France, the labor code defines the work week,overtime, vacation and personal leave. Absenteeism is low in France relative to many other Europeannations (Background Notes, 1999, p. (1999). films and televisionshows remains high. Non-EU lawyers will qualify for a"short-form" exam provided they are able to prove that the foreign state orterritorial unit in which they practice allows French lawyers to practicelaw "under the same conditions." Failing that, they will have to take thefull French bar exam. This has possible long-term ramifications for Americanlegal counsel (Murphy, 1999, p. Therewas a popular uprising in the late eighteenth century (inspired in part bythe American revolution) which led ostensibly to a republic, but France wasto see four more periods of monarchy or absolute rule. (1999, November 8). France has a highly educated labor force (education is free andmandatory until age 18, literacy is 99 percent) which yields high qualityacross industrial sectors. These broadcast quotas were approved by the EUCommission and became effective in mid-1992. The nation was once a significant colonial power, butits colonies have largely gained independence. Country Commercial Guide: France. Ellison, S. Politics France was one of the first European nations to move from a feudalsociety into a nation-state, and its monarchy lasted for centuries. The duties levied on imports from non-EU countries are moderate. Due to EU regulations, France is required torecognize law degrees for EU nationals but not third country nationals.Nevertheless, non-French EU lawyers, who are also required to qualify as"avocats," may do so via exams less stringent that those for non-EUlawyers. Other trade barriers also exist in that some American companies havenoted that France has complex technical standards and often long testingprocedures. Testing requirements (which usually must be performed inFrance) and standards sometimes appear to exceed reasonable requirementlevels needed to assure proper performance and safety. Companies considering doing business here do not haveadditional concerns about bribery as a business expense, and relationshipswith unions can be good. These delegates can present individual or collectiveissues to the employer, and they can inform the government of anyviolations of labor law. (1999, November 19). If you think France is fallingbehind, better look again. The makers of Europe, Inc. There are no significant restrictions on the ownership structure ofcompanies operating in France. Medium and large companies must also haveoccupational safety and health committees staffed by employees. The prime time rules go beyond the requirements of the EUBroadcast Directive and will limit the access of U.S. There arealso a series of labor tribunals which exist to help resolve labor disputes(Ellison, 1999, p. The EU tariff schedule is basedon the Customs Cooperation Council Nomenclature (CCCN), also referred to asthe Harmonized System. Nevertheless, the market share of U.S. Wholly-owned subsidiaries and directinvestment are encouraged by the French government, and the infrastructurewithin France supports global operations. Companies with more than 5 employees are required by French law tohave a joint management/employee committee to which employees are elected.This committee can advise on policy issues, but cannot veto policy. 3). programs to theFrench market. With regard to tariffs, the member states of the European Union haveestablished a Community Integrated Tariff (TARIC) system, under whichduties are applied to imports from non-EU countries, including the UnitedStates. Washington, DC: U.S.Department of State. A large influx ofimmigrants from the Middle East (particularly Algeria) during the 196 s and197 s has resulted in an increasing Muslim population and some ethnicproblems between Muslims and other French residents (Background Notes,1999, p. Fortune,pp. To some degree, this delegate isthe French counterpart of the shop steward in American firms (Ellison,1999, p. TARIC was established by the 1958 Treaty of Rome as part of theEuropean Economic Community (EEC). Business Environment After Germany, France is the second-largest trading nation in WesternEurope. 4). This is an importantconsideration, however, since some countries do have environments wheregratuities to public officials and others are required to ensure smoothbusiness operations for foreign, and particularly American, firms. Today, France is a republic governed by a president (who serves aseven-year term) and parliament. Most of thecomplaints have involved electronics, telecommunications equipment andagriculture standards. The prime minister is named by thepresident (Background Notes, 1999, p. The Third Republic(established in 187 ) lasted until World War II when Germany occupiedFrance. Under the implementing legislation which went into effect in1993, this means that non-EU lawyers will have to pass either a "short-form" exam or the full French bar exam. Washington, DC: U.S. 2 1ff. France, however,specifies a percentage of European programming (6 percent) and Frenchprogramming (4 percent). Total trade (imports plus exports ofgoods and services) for 1998 amounted to $73 billion, or half of GDP.European Union (EU) countries account for approximately 6 percent ofFrench trade. 1, 4. Its foreign trade balance for goods has been in surplus since1992, reaching $25.4 billion in 1998. For example,employee delegates to unions serve one-year terms in companies with morethan 1 employees. However, wage rates are competitive for WesternEurope. In the entertainment industry, the 1989 EU Broadcast Directiverequiring a "majority proportion" of programming to be of European originwas incorporated into French legislation in 1992. Most raw materials enter duty-free or at lowrates, while most manufactured goods are subject to rates of between 5 and17 percent. Because of this, France can be used as a goodentry point into other European Union nations. 1). Deregulation could trim structuralunemployment. Introduction One of the oldest countries in Europe, France has long been a keytrading partner with other nations, particularly those in Western Europeand North America. Meaningful access will now hinge on how implementing regulationsare administered, including the interpretation of what is meant by grantingaccess on a 'reciprocal basis' and the nature of the exam to be imposed onthe non-EU lawyers. This research considers these factors intoday's environment. France and other EU member states extend varying preferential tarifftreatment to imports from the African, Caribbean and Pacific developingcountries (under the Lomé Conventions), several French and Dutchterritories and departments, Turkey, Egypt, Morocco, Tunisia, Algeria,Israel, Malta, Cyprus, Jordan, Lebanon and Syria. (1999, November 22). Wall Street Journal Europe, pp. This system was introduced to provide a standardtariff classification regime for all products imported and exportedthroughout the world (Venkitaramanan, 1999, n.p.). Reorganization of the work week by managementmust also be discussed with the delegate. EconomicTimes, n.p. 2 2). According to French trade data, American exportsaccounted for 8.7 percent (approximately $25 billion) of France's totalimports (Woodruff, 1999, p. Bribery is not a significant issue in France and American companiestypically do not set aside moneys to cover bribery. (1999). Today, France is seen asone of the more important markets within the EU, and American companiesconsidering expanding operations to France need to evaluate the political,demographic and business environment within France before making thecommitment to market there.

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