1. 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

2. Réf. January 29, 2007 2 I.Introduction II.Foreign Direct Investment III.Tax Misery & Reform Index IV.Tax / Spending Burden V.€ 200.000 Income, Married VI.The local Employee Happiness Index VII.Misery Index for Expatriates VIII.Analysis by region and function IX.Conclusion Summary

3. Réf. January 29, 2007 3 I. Introduction Review of key factors Tax considerations only break ties for a final decision Case study and your recommendation

4. Réf. January 29, 2007 4 II. Foreign Direct Investment (in-bound by country) 1997-2005 (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

5. Réf. January 29, 2007 5 II. 1. FDI Out-bound from developing countries One-half global GDP (in PPP) is from developing countries Growing FDI: FDI 2006% Increase (2005-2006) In China70.0-3.3 China, Hong Kong41.415.4 India9.544.4 Russia28.494.6 Brazil165.9

6. Réf. January 29, 2007 6 FDI inflows, by host region and major host economy, 2004-2006 (billions of dollars) Source: Unctad - a) Preliminary estimates

7. Réf. January 29, 2007 7 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

8. Réf. January 29, 2007 8 III. Tax Misery and Reform Index

9. Réf. January 29, 2007 9 IV. Tax / Spending Burden

10. Réf. January 29, 2007 10 V. €200,000 Income, Married

11. Réf. January 29, 2007 11 V. €200,000 Income, Married (next) (New Orleans)

12. Réf. January 29, 2007 12 VI. The Local Employee Happiness Index

13. Réf. January 29, 2007 13 VI. The Local Employee Happiness Index (next)

14. January 29, 2007 VII. MISERY INDEX FOR EXPATRIATES

15. Réf. January 29, 2007 15 Expatriate Gross salary - $ 100 000 Comparative cost of US expatriates in 8 EU cities

16. Réf. January 29, 2007 16 Expatriate Gross salary - $ 200 000 Comparative cost of US expatriates in 8 EU cities

17. Réf. January 29, 2007 17 Expatriate Gross salary - $ 500 000 Comparative cost of US expatriates in 8 EU cities

18. January 29, 2007 VII. Analysis by region and function

19. Réf. January 29, 2007 19 Leaders and challengers by criteria and trends

20. Réf. January 29, 2007 20 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%)

21. Réf. January 29, 2007 21 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 %)

22. Réf. January 29, 2007 22 Investors’ preferred areas by functions (% of quotation for each region as first choice)

23. Réf. January 29, 2007 23 The Top 10 countries for production units 2006 (% of citations for each country – one selection) Ranking 2005: China (23 %) Poland (11 %) Germany = USA (6%)

24. Réf. January 29, 2007 24 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%)

25. Réf. January 29, 2007 25 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%)

26. Réf. January 29, 2007 26 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%)

27. Réf. January 29, 2007 27 Advantages and threats to Western Europe as a business location

28. Réf. January 29, 2007 28 Now: Where do you want to work in the world ? Where you have the highest « Real Pay » ?

29. Réf. January 29, 2007 29 Where are the entrepreneurs and the IPO’s ?

30. Réf. January 29, 2007 30 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. 470-525)