January 29, 2007 HEC January International Business Seminar : Key Factors and Business Location Case Study Monday 29th of January 2007 Jack Anderson CEO, Attorney at Law

Réf. January 29, I.Introduction II.Foreign Direct Investment III.Tax Misery & Reform Index IV.Tax / Spending Burden V.€ Income, Married VI.The local Employee Happiness Index VII.Misery Index for Expatriates VIII.Analysis by region and function IX.Conclusion Summary

Réf. January 29, I. Introduction Review of key factors Tax considerations only break ties for a final decision Case study and your recommendation

Réf. January 29, II. Foreign Direct Investment (in-bound by country) (US Dollar Millions 000,000) Source : UNCTAD (note that after 2001 Belgium and Luxembourg are separately reported, but separate reporting for prior years is not available) * For 2005 only OECD country datas available ** ** FDI France doubled in 2005 vs 2004 to be N°4 in the world and, in 2006 to remain N°4 increased 40% but represents only half of number 2, the UK

Réf. January 29, II. 1. FDI Out-bound from developing countries One-half global GDP (in PPP) is from developing countries Growing FDI: FDI 2006% Increase ( ) In China China, Hong Kong India Russia Brazil165.9

Réf. January 29, FDI inflows, by host region and major host economy, (billions of dollars) Source: Unctad - a) Preliminary estimates

Réf. January 29, II. 2. France : Outbound & Inbound Direct Investment by French and International Investment Notes : Data are converted to US dollars using average exchange rates; p: preliminary; e: estimate Source: OECD International direct investment database

Réf. January 29, III. Tax Misery and Reform Index

Réf. January 29, IV. Tax / Spending Burden

Réf. January 29, V. €200,000 Income, Married

Réf. January 29, V. €200,000 Income, Married (next) (New Orleans)

Réf. January 29, VI. The Local Employee Happiness Index

Réf. January 29, VI. The Local Employee Happiness Index (next)

January 29, 2007 VII. MISERY INDEX FOR EXPATRIATES

Réf. January 29, Expatriate Gross salary - $ Comparative cost of US expatriates in 8 EU cities

Réf. January 29, Expatriate Gross salary - $ Comparative cost of US expatriates in 8 EU cities

Réf. January 29, Expatriate Gross salary - $ Comparative cost of US expatriates in 8 EU cities

January 29, 2007 VII. Analysis by region and function

Réf. January 29, Leaders and challengers by criteria and trends

Réf. January 29, The top 10 most attractive countries in 2006 (total superior to 100% - 3 possible choices) Ranking 2005: 1)China (52%) 2)USA (39%) 3)India (18%) 4)Poland (17%)

Réf. January 29, The most attractive global areas 2006 (total superior to 100% - 3 possible choices) Ranking 2005: 1) Western Europe (63 %) 2) Central & Eastern Europe (55 %) 3) China (52 %) 4) USA / Canada (45 %)

Réf. January 29, Investors’ preferred areas by functions (% of quotation for each region as first choice)

Réf. January 29, The Top 10 countries for production units 2006 (% of citations for each country – one selection) Ranking 2005: China (23 %) Poland (11 %) Germany = USA (6%)

Réf. January 29, The Top 10 countries for call centres 2006 (% of citations for each country – one selection) Ranking 2005: 1) India (23 %) 2) Poland (11 %) 3) Germany = USA (6%)

Réf. January 29, The Top 10 countries for headquarters 2006 (% of citations for each country – one selection) Ranking 2005: 1) USA/ Canada (23 %) 2) UK (14 %) 3) Germany (11%)

Réf. January 29, The Top 10 countries for research & development centres 2006 (% of citations for each country – one selection) Ranking 2005: 1) USA/ Canada (22 %) 2) Germany (18 %) 3) France = UK (7%)

Réf. January 29, Advantages and threats to Western Europe as a business location

Réf. January 29, Now: Where do you want to work in the world ? Where you have the highest « Real Pay » ?

Réf. January 29, Where are the entrepreneurs and the IPO’s ?

Réf. January 29, IX. Conclusion Nothing is miserable but what is thought so, and contrariwise, every estate is happy if he that bears it be content. Boethius (A.D. C )