993).
In general, the economic situation in France seems to be improving, although there is still a high unemployment rates of approximately 12 percent. However, capital investment was expected to increase by 10 percent during 1995 and the inflation rate is anticipated to be less than 2 percent. This is the lowest among all the Western European nations (Hurtado, 1995).
The growth rate is not very high, at about 3 percent per year, but the country is certainly quite stable, infrastructure is already built, and democratic institutions are functional. Thus, although the potential for growth is clearly not as large as in some of the developing countries, the risk is much lower and the potential for success much higher.
The GNP for France was at 1,105 billion in 1990, with GNP per capita in U.S. dollars of approximately $19,590. Exports and imports were relatively balanced, with a trade balance of ($18,667). Both imports and exports were over $200,000 million (Hoover's Handbook of World Business, 1993).
Although the final size of the market depends upon the product actually offered for sale, the market potential depends on many factors, including population size, population density, urbanization and distribution of population, and market segments.
To start with the population, as of 1991, it was 56.7 million. That population was spread out throughout the country, with several major urban areas. The capital city is Paris and general urbanization is at 74%, with population density of 257 people per square mile. This indicates that the marketer would be able to reach a substantial percentage of the population through targeting campaigns to urban areas.
Income per capita is also an important measure of buying power. In 1991, the purchasing power of the average French citizen was at 68% of the average U.S. citizen. On the other hand, cost of living was extremely high, with a rate at 122% of the cost of living index of ...