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France Business & Security

RUNNING HEAD: FRANCE BUSINESS & SECURITY

France; Business and Security Concerns [Name of the Writer] [Name of the Institution]

France Business & Security

France; Business and Security Concerns

Introduction France is the fifth largest economy in the world after U.S., China, Japan and Germany. The French economy is based on a broad industrial and commercial base ranging from agriculture to light industry and heavy, to the most advanced technology and a thriving services sector. France is the largest agricultural country in Western Europe with more than half of its land under cultivation. The main crop is wheat, but also produces corn, beet and barley in large quantities for domestic consumption and export (Timothy, 2008). The country is self sufficient in most agricultural products and is one of the largest producers of wine. Livestock is also expanding rapidly. Despite facing some criticism that French agriculture is inefficient, the sector has made good profits. French companies dominate many sectors, particularly in steel, automobiles, aviation, mechanical engineering and electronics, textiles, chemicals and processed food. In advanced industrial sectors(EnerPub, 2007), French nuclear industry is large enough to supply almost three-quarters of the country's energy needs (coal mining has long since lost its prominence and today is in terminal decline). France is also a world leader in computing and telecommunications. The service sector is dominated by tourism, which has long been a major foreign exchange inflows, but during the nineties the financial sector has grown rapidly. Two issues have dominated discussions of economic policy in France in recent years: high unemployment (currently 9.2%) and the future of much of the economy in state hands. The government of former prime minister Alain Jupp initiated a privatization program by selling some oil companies and financial institutions, the program was suspended in large part by its socialist successor (which also introduced a bill to create 350,000 new jobs). French capitalism,

France Business & Security

scion of a long tradition of interventionism and protectionism, has seen in recent years creating a mega-mergers and takeovers by other companies, in a process of concentration and internationalization (Stanley, 2000). France is a founding member of the European Community. The main trade partners of France are the countries of the European Union, especially Germany, Belgium, Italy, Spain and the UK. Outside the European Union, the main partners are the United States and Japan (William, 2009).

Detailed Description We see that most of the international trade of France is made with developed countries, plus France generates 60% of its exports and imports with member countries of the European Union. It is tempting to argue that trade with Asian countries is a zero sum game. That is to say that, the development of dragons or other developing countries (DCs) to the detriment of Western economies and particular causes of unemployment. Our profits cause job losses. Indeed, the relocation of some industries have caused job losses in France. But it is a short-term analysis. Developing countries practicing social dumping (wages very low relative to those of French employees) would be more competitive. But France is an industry that is one of the most productive in the world, this is reflected in the amount of exports and the balance of the balance of payments. This represents the balance between exports and imports, the balance of 1996 was 122.3 billion francs and the coverage of the French economy (exports / imports is to say, the share of imports "paid" by imports) amounted to 109%, its highest level since 1960 (William, 2009). In addition, France is the fourth largest exporter of goods and the second in that of services. The CEO of L'Oreal (No. 1 worldwide cosmetics) said recently that the French factories

France Business & Security

of the group was more competitive than those living abroad. One of the reasons for the Toyota plant in Valenciennes is the presence of a skilled workforce and good transport infrastructure and geographical position of France in Europe (Tardy, 2004). France has the potential to attract foreign investors and thus create jobs. France is the fourth country to the amount of foreign direct investment in its territory. These represent 28% of manufacturing jobs, 28% of its value and 33% of its exports. All sectors 2 million jobs depend on direct investment in France. By comparison, investments in Asia account for 6% (and 87 000 jobs) of the total French abroad. If the productivity of a country is important, not so much to give it a good place in international trade but rather to allow it to consume more, to finance its growth: a company must be competitive, a country must be productive(William, 2009). The reconciliation of mass unemployment hitting France and the jobs to Asia is easy. The purpose of this paper is not to explain unemployment, but to refute the claim that the development of Asian countries to the detriment of European employment. However, we can mention the problem of employability of the workforce in France. The employability of an individual is measured by its ability to exercise one or more trades. But the job requires more particular degree and therefore, employee mobility is restricted (Timothy, 2008). The import of consumer products can be disturbing. Developing countries produce and export these products to pay for their imports of capital goods. In fact, we export mainly capitalintensive goods (goods that were produced with relatively little labor and with a lot of capital), which creates few jobs but a lot of wealth. However the effect on the demand for labor is limited, the OFCE is estimated that between 1974 and 1992, 174 00-230 000 jobs were eliminated due to competition from developing countries . On the other hand some sectors such as tourism and hospitality, are protected because of their nature (we will not outsource a server of coffee in

France Business & Security

Asia) but some economists like to lower charges on such low wages to promote labor demand of enterprises for these positions. Globalization and Its Impacts The global economic balance is changing ever more rapidly as a result of the intensification of trade and financial transactions. This phenomenon of globalization forces us to wonder about the position of France and of Europe in this new world (Haglund, 2010).

The great global economic exchanges Globalization transforms the traditional economic equilibrium by introducing new players into the economic arena. Communication technologies and computer amplify the effect of trade liberalization; any business opportunity can now be captured immediately and in real time. Thanks to advances in transport and decreasing costs, distances have shrunk considerably. The current situations allow the comparative advantages of each country and therefore relocate certain production and outsource certain activities to other countries (William, 2009). The evolution of the division of tasks at international level is radically changing the distribution of activities among the various geographical areas. This change primarily benefits the developing countries. Your participation in international trade has increased considerably between 1992 and 2003, the share of emerging countries in world exports rose from 16% to 35% and 27% to 44% in imports. These developments mainly benefits the economies of Asian countries. Globalization is a phenomenon still very uneven accentuating the marginalization of the poorest countries.

France Business & Security

Despite the achievements of certain emerging countries should not lose sight of the marginalization that continues to affect many parts of the world: 12 countries account for 75% of exports and receive three-quarters of foreign investment, 25% remainder is distributed among the other 176 countries. Conversely, exports from 49 least developed countries still account for only 0.25% of world exports. The difference in income per capita (measured in purchasing power parity) among the 15 world's richest and 15 poorest remains of 46 to 1 (Timothy, 2008). The marginalization of Africa remains a sad reality: the entire continent represents only 1.6% of the value of world exports, while African exports in 1980 represented 3.3% of the total. The sum of the sales volumes of the two leading companies in the world exceeds the GDP of Africa. Life expectancy in Africa increased from 50 in 1990 to 46 in 2002, mainly due to the alarming advance of major pandemics, especially HIV / AIDS. Collective rules must be adopted to regulate globalization and address the major challenges that it poses. Globalization poses several challenges.

The challenge of development Progress has been made toward achieving the Millennium Development Goals (MDGs), but such gains are uneven and inadequate and there are still over one billion people living on less than a dollar a day. Southern countries are, above all, responsibility for their own development. Only the growth driven by private sector development, investment and trade, will end the misery. However, the call market forces as the only solution would be to plunge the poorest countries in their own trap of poverty, as these countries lack the resources necessary for their integration into the globalization process. It is therefore essential to increase the amounts of official development assistance (ODA). France has pledged to increase their contribution to ODA to 0.7% of gross

France Business & Security

national income by 2012 (compared to 0.47% which contributed in 2005). The Member States of the European Union took a collective decision to agree to a similar effort by 2015. The challenge of the environment Today, the risks connected with a limitless exploitation of the planet's resources are obvious. The threats to biodiversity and climate change issues, the risks associated with confirmed, according to the study inter-ministerial group on Climate Change (IPCC) - an increase in average global temperature between 1.4 and 5.8 C by 2100, the resulting sea level rise and increased frequency of extreme weather events are some of the symptoms that confirm this evidence. Another serious problem is the long-term sustainability of global energy model, which depends on 85% of fossil fuels and, according to estimates, will have to endure a 60% increase in global consumption by 2030. The consequences of damage to the environment first and foremost affect the most disadvantaged: 800 million people suffer the effects of desertification and more than one billion still lack access to clean water(William, 2009). In the fight against global warming, France will respect its obligations under the Kyoto Protocol and has set a target to reduce by 75% its emissions of greenhouse gases by 2050 (Francois, 2009). France also supports the creation of a United Nations Environment able to develop synergies and coherence between different international actors involved in the environmental arena (Joseph, 2003). The challenge is, to respect the identities and social equilibrium of each country in a world that is increasingly open (Timothy, 2008). With globalization, the various social models (right to work, social protection) or are forced to compete, thus running the risk of social leveling of such models to the "lowest bidder

France Business & Security

social". Sometimes developing countries assimilate social norms to protectionist measures, so that the international community has difficulty in defining a better articulation between the social and economic demands which can be perceived as incompatible. France continues to support proposals that aim to facilitate dialogue between the international economic and financial institutions and agencies like the ILO.

Recommendations Devise new standards to humanize globalization and get a more supportive. Since the persistence of underdevelopment and political instability favors demographic, it is essential to provide the populations of poor countries an alternative capable of replacing the resignation and despair. Beyond the basic humanitarian considerations, it is well understood self-interest of developed countries, both politically and economically. For this reason, France defends its conviction that it is necessary to redistribute the wealth generated by globalization more equitably(William, 2009). This happens both by an increase in official development assistance for the implementation of innovative sources of financing for development and consideration, in trade rules negotiated in the WTO, the particular situations of the least developed countries. In the framework of the Doha round of development, France advocates, along with the European Union, by the application of specific treatment for developing countries and especially the least developed countries (Timothy, 2008). Public authorities are not the only ones who should take action: also should encourage entrepreneurial efforts toward greater social and environmental responsibility, for example through the Global Compact proposed by the Secretary General or the OECD Guidelines.

France Business & Security

The management of international public goods, among which are environmentally sensitive, and resolution of problems that require the mobilization of all, such as poverty or health challenges cannot be the sole responsibility of States. Address these global challenges, international organizations should play a central role. Sometimes not as effective as they should, these multilateral organizations, the UN in the first place, must be strengthened. France calls for the strengthening, in order to strengthen the legitimacy of these areas against the temptation of unilateralism. This reform should be structured around two main objectives: firstly to give back to the Economic and Social Council (ECOSOC) the ability to play a real role in guiding and coordinating within the system and secondly to encourage reform of the operation and financing of the operational agencies of the United Nations in order to ensure consistency and effectiveness in the field. France also supports the creation of a political space for economic and social governance that would handle the necessary impetus to international institutions, promote coordination between States and international institutions more effectively anticipate global problems and define the lines of common action. This initiative is part of the logic of the "enlarged dialogue" outside the G8 Evian, that began in 2003 under the French presidency.

Conclusion We cannot demonize the competition from Asian countries, partly by the weakness of our relations with them but also by the long-term evolution of these. Since 1983 we fight rising prices, which would enhance our competitiveness, but we have seen that the French economy is competitive, whatever the Liberals, being competitive means not only be cheaper but also produce better . This raises the question of the efficiency wage, that is to say the salary to employees who appears as one who pays precisely their efforts and their contribution to the

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company and its success. Sell it first meet a demand, a customer and why the efforts of the entire company are required. The case for the return of protectionism seems more perverse, they imply a refusal of the development of underdeveloped countries. In fact, it is clear that we help relocating to higher living standards in developing countries which can contribute to limiting immigration. On the other hand by buying products to these countries, we contribute to their development but also the opportunities for our businesses and therefore that of job creation in France.La place of France in the world economy is demonstrate its dynamism in many areas. But above all relativize the importance of trade in the French economy. The development of sectors such as services especially in a country becoming richer and the price of consumer goods fall seems more promising.

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References EnerPub (2007). "France: Energy profile". Spero News. Francois Heisbourg, (2009) "Don't expect France to change its mind," Financial Times. Haglund, David. (2010) France in global context International Journal 61. 2: 522-525. Joseph Nye, (2003). "No, the UN is right for the job," International Herald Tribune. Stanley Hoffmann, (2000) "Deux universalismes en conflit," Tocqueville Review 21, no. 1. Tardy, Thierry. (2004) France and the US: The inevitable clash? International Journal 59. 1 105-126. Timothy, Baycroft (2008) France: Inventing the Nation. Hodder Education. William, Safran (2009) The French Polity Pearson Longman.