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Globalization of the Economy
Direct foreign investment
The French economy is open to trade and investment.
In 2005, FDI inflows in France reached 40 billion euros and France invested 48,6 billion euros abroad.
Indeed, investors appreciate the quality of the French workforce, the high level of research, the mastery of high technology, stability of the currency and a good control of production costs.
Nowadays, France is ranked fourth in the world as host country for direct foreign investment behind Great-Britain, China and the USA. France outflows are destined to Great Britain, Netherlands, Germany or the USA, to name a few.
In addition, the rate of corporate taxation (with a basic rate of 33.3%) is only 2,5% of GDP. France is the second country to host foreign companies corporate headquaters. In 2002, 16 000 foreign companies were registered in France, this figure places the country in the second european position, after Great Britain.
Foreign trade
The French trade, which balance deficit reached 6.6 billion Euros in 2004, allows the country to be the fourth largest exporter of goods (principally equipment) and the second largest of services and agrifood (notably cereals and processed foods). France remains the principal European agricultural exporter.
In addition, France trade with its partners in the European Union represents 70% of its exchanges and 50% within the Euro Zone. Moreover, France is strengthening its comercial exchanges with areas that experience a high growth : China and the new european countries.
The need to import energy, which had for so long weighed heavily on the balance of trade, has considerably diminished thanks to nuclear production of electricity. As a result, 50% of today's energy requirements are met by domestic sources. Our main electricity production come from nuclear (78%) and hydraulic (12%).
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Approaching France
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