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FRANCE SORA PARK SUNGHWAN YOO International Marketing

‘Republique francaise’…

Contents 1 / Overview 2 / Background of market 3 / Culture & Business Practices 4 / Opportunity & Risk

Overview of France Capital : Paris (largest city)  Official language : French Area : 214,890 sq miles Population Currency : Euro (€), Franc     - Total : 63,587,700(2006) - Structure : 92% French, 3% North African, 2% German, 1% Bretagne, 2% etc (5 million people of Muslims)

Backgrounds of market : Population

Backgrounds of market : Population

Backgrounds of market : Population France is now entering into the aging society

Backgrounds of market : Fertility Rate (children born/woman)

Backgrounds of market : Economics F r a n c e  GDP (2005) Inflation Rate : 2%   - Total : $1.830 trillion - Per capita : $29,316 Yearly Growth Rate : 4%  Major products : Oil, Steel, Agriculture, Luxury goods Major trading countries : EU, USA 

Backgrounds of market : Economics France's GDP growth is relatively robust. The unemployment rate is high, at nearly 10%. (Creating jobs is the top priority of the government) France's poverty rate remains one of the lowest in the world. France joined in EU in March 1957 & adopted the euro as its currency in January 1999

Backgrounds of market : Trade Policies Import and Trade Tariffs : Duties are applied to imports from non-EU countries Trade policies are determined by European Union agreements and practices - FTAs : Norway, Iceland, Switzerland, Hungary,... (26 countries) - Most raw materials : duty-free or at low rates - Most manufactured goods : rate between 5 and 17 percent - Most agricultural product imports : strictly regulated based on EU and French standards

Culture& Business Practices : Cultural Behavior Punctuality is treated very casually in France. France is a highly stratified society, with strong definition and competition between classes. The French handshake is brief, and is accompanied by a short span of eye contact. Always shake hands when meeting someone, as well as when leaving. The French have a great respect for privacy because they are privacy-sensitive people.

Relationships & Communication   Appointments are necessary and should be made at least 2 weeks in advance.  Do not try to schedule meetings during July or August. (common vacation period) Business Meetings Etiquette   Emphasizing courtesy and a degree of formality.  The French appear extremely direct because they are not afraid of asking probing questions. Culture & Business Practices : Business Etiquette

Business Cards   Business cards are exchanged after the initial introductions.  Include any advanced academic degrees.  French business cards are often a bit larger than in many other countries.   The handshake is a common form of greeting.  Business can be conducted during any meal, but lunch is best.  Business dress is stylish. General Etiquette Culture& Business Practices : Business Etiquette

Opportunity & Risk : Market Opportunities Food Safety & Security Equipment Computer Service Telecommunication Automotive Parts Equipment Medical Equipment

Opportunity & Risk : Market Risk

 High chronic unemployment rate (since the 1970s)  A failure of inconsistent policies  Low participation of specific groups such as the low-skilled and those nearing retirement age  Relatively low average hours worked Low Labor Performance  Policy considerations often hamper the emergence of effective competition  It reduces productivity growth and hinders job creation in regulated sectors Opportunity & Risk : Market Risk !!! Instability of Labor Market Restrictions on competition

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