Direct Foreign Investment into France

Economic and Political Climate for Foreign Business 7

Methods for Marketing and Distribution 10

Annual Flows of Direct Foreign Investment Into France 14

The intention in this paper is to explore the feasibility of establishing a hightech business in France by looking at some of the most important factors involved in business success in another country. A company, such as one that deals primarily in information technology and other related products, would be the best choice for entry into France. It would probably be beneficial if the company has a well-known presence on the international scene, and is financially large and stable as well. In some respects, as will be discussed, France is a difficult market to enter and ultimately success may take some time.

France is a moderatelysized European country located in a central position within the European Union. It comprises three major physical regions, including the lowland basins, the Hercynian uplands and plateaus, and the high Alpine mountains and valleys of the Alps and Pyrenees. The lowland basins include most of northern and Western France, while the Alps are situated in southeast France and the Pyrenees form the souther border of France

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of the value of the imported goods. This is not the only cost to the U.S. business bringing manufactured goods into the country. There is also an internal tax called the Value Added Tax which is charged at the standard rate of 18.6 percent in most instances. This tax is added to the price of all goods and services sold in France itself. One potentially problematic area is that of technical standards. Goods sold in France must conform to French and EU standards. In addition, technologically sophisticated equipment may need to meet testing and approval standards in France itself before it can be sold (France, 1995). Competition In general, French business favors French citizens. As noted earlier, the government does directly subsidize some heavy industries, as well as important research and hightech firms. However, there are some privatization efforts underway which would impact competition. There is also serious competition in France for hightech industries. Research and hightech are important aspects of the economy, unlike in most developing countries. Research and development efforts in France are second only to those in the U.S.. While much of this research funding goes to the defense industry, there is also consid
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Some common words found in the essay are:
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Approximate Word count = 3507
Approximate Pages = 14 (250 words per page)