FRANCE: Useful Info

Since prehistoric times, France has been a crossroads of trade, travel, and culture. It is a strong player in European history and politics, and continues to wield influence in international affairs.

Despite recent deficit problems, France’s GDP of $2.02 trillion makes it the fifth largest Western industrialised economy. Its fertile soil has made it the largest agricultural producer in the EU, and the second largest in the world. Aside from the agricultural resources, it has a large industrial base and an excellent services sector, due to its very skilled work force. The telecommunications, weapons, and aerospace sectors have performed particularly well.

The world owes France some of its greatest thinkers and artists, including Descartes, Pascal, Rousseau, Voltaire, Sartre, Renoir, Monet, Cezanne, Gauguin and Matisse. French cuisine and fashion have also been embraced around the world.

Quick Facts

Population: 62.4 million
Capital: Paris
Area: 551,670 sq. km. (220,668 sq. mi.)
Major Language: French
Monetary Unit: 1 Euro = 100 cents
Main Exports: Machinery and transport equipment, agricultural products including wine
GNI per capita: US $30,090

Economic Background

France accounts for 40% of world trade. In 2004, total trade reached $858.2 billion, 40% of its GDP. Over half of its trade, or 61%, is concentrated within the EU—and a sizeable of that goes to the UK.

France and the UK have a strong trading partnership, and play major role in each other’s economies. France receives 10% of the UK’s total exports, behind only the United States and Germany, yielding £18.1 billion in 2003. France, on the other hand, exports an average of £19.3 billion worth of goods to the UK, its fourth largest market.

One of the biggest advantages that France offers to UK investors and entrepreneurs is its location. The proximity and excellent communication and road system mean that a business trip to France would actually be shorter than a visit to other parts of the UK. It is also at the very heart of Europe, making it a natural choice for multinationals to small or medium sized businesses. Over 2.5 million companies hold office on its shores.

France is also an excellent destination for Research and Development, and was second only to the UK in number of projects. This is partially due to its labour force’s educational attainment and unparalleled efficiency—its citizens have the highest hourly productivity rate in the world, ahead of the United States.

The country’s ability in Research and Development can be seen in its tradition of industrial innovation. Its engineers spearheaded new technologies such as the Queen Mary 2, Airbus 380, TGV high-speed rail, smart cards, nuclear power and medical research.

The government has also made the attraction of foreign investors and business as one of its priorities, which could lead to the development of laws and incentives to keep it competitive against the Baltic region.

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