Table of Contents I. Introduction 4 II. Brief History of the Country 4 A. The Rise of France 4 B. Economic Expansion 5 C. Urban Prosperity 5 D. Rural society 6 E. Major Rulers of France 6 III. Cultural Aesthetics 7 A. Personal Communication, Including Nonverbal Communication Styles 7 B. Values and Attitudes 7 C. Manners and Customs 7 D. Social Structure 8 E. Religion 8 F. Education 8 G. Official Language or Business Language 9 IV. Business Environment and Customs 9 A. Meetings 9 B. Dining 10 C. Corporate Culture 10 D. Greetings 10 E. Corporate attire 11 F. Negotiating 11 G. Business Card Exchange 11 F. Time Difference Between Central Standard Time and France 12 V. Transportation 12 A. Railways 12 B. Roads 12 C. Bus transport 13 D. Waterways 13 E. Air Travel 13 VI. Currency or Currency Exchange 13 A. Main Currency Used in France 13 B. Economic and Monetary Union 14 C. Current Exchange Rate 14 VII. Role in International Trade 14 A. The French Government Trade Policy 14 B. The Key Exports of France 15 C. The Key Imports of France 15 D. Trade Barriers to International Trade in France 15 VIII. Political System, Legal System, and Political Risks 15 A. Political System 15 B. Legal System 16 C. Political Risks 18 Summary 20 References 21

The business environment has evolved in the past century, where numerous countries worldwide have embraced globalization. The expansion into international markets has not only benefited the countries involved but also businesses who venture into this type of setting. Although numerous advantages are associated with global expansion, several risks must be accounted for. These risks can be detrimental to an organization's competitive advantage or impact its revenues. However, these risks can be mitigated by analyzing the business environment in the country where the expansion will occur. One of the countries in which one can consider expanding is France; therefore, it is important to carry out a business analysis to determine the suitability of doing business in this country.

For thousands of years, people have lived on the territory that is now France. The oldest city in France, Marseille, was established around 600 BC when a section of the Greek Empire colonized Southern France. Celtic Gauls started to emerge simultaneously in other parts of France. In 390 BC, the Gauls would take control of Rome. Gaul would eventually be conquered by the Romans, who used the region productively up until the fourth century (Le Cacheux, 2019). The Franks started to seize control in the fourth century from whom France derived its name. Charlemagne unified the Franks in 768 and started to expand the realm. The Pope gave him the title of Holy Roman Emperor, and today, the French and German monarchs are credited with having him as their founder.

For the following 1000 years, the French monarchy would remain a dominant force in Europe. The French Revolution established the French Republic in 1792. However, this was short-lived as Napoleon seized the initiative and established himself as the Emperor. He then went on to conquer the majority of Europe. Later, Napoleon was overthrown, and the Third Republic was proclaimed in 1870. France continues to be a major hub for philosophy, science, and art worldwide.

Alongside nations like the United States, Germany, and the United Kingdom, France is one of the world's top economic powers. As this time was widely known, the trente glorieuses ("thirty years of glory") was a prolonged period of remarkable growth that lasted for a long time in the postwar period until the mid-1970s. But by the 1980s, robust growth was once again seen. Despite slowing down, this tendency persisted throughout the twenty-first century. The postwar era saw a dramatic change in the economy's structure. While agriculture and manufacturing dominated the economy in the 1950s, tertiary (mostly service and administrative) industries have since taken over as the country's main source of employment and income creation. Similarly, northern France's densely industrialized and urbanized areas were formerly expanding most quickly, but these regions started to see job losses and population declines in the 1980s. In the modern era, development has shifted to the south and, to a lesser extent, the west of France.

In France, urban prosperity developed as a result of increased productivity, which encouraged commerce and led to the construction of better bridges and buildings. Peasants' migration from the countryside certainly rose as they looked for greater prospects and independence, but the cities continued to resemble their rural surroundings in terms of appearance and activity. A substantial amount of Paris was an amalgamation of expanding villages; many urban houses had rural attachments, often within the city walls. However, the wealth of medieval urban areas is mostly attributable to trade growth and a major supplementary sector (Mandžo & Holjan, 2018). In France, the increase in urban affluence has been steady for many years. It increased from 61.88 percent to 80.69 percent between 1960 and 2020. In the 1970s, urbanization was a more prominent phenomenon. In fact, over this time, there was a ten-point rise in the percentage of French people living in cities. In France, the urban population (as a percentage of the overall population) was 80.97 percent in 2020.

Most of France is considered "rural," in the sense of lightly (not poorly) populated terrain, regions distinguished by their tiny towns, villages, and agriculture. Holidaymakers have a wide and very diverse territory to select from if they're seeking a place to unwind and rest in the tranquility of rural France. Almost the whole country of France is available to those whose primary goal of a rural vacation is to unwind in the shade of a tree or near a pool and do nothing for a week or two. To have a peaceful rural base from which to explore the intriguing countryside, interesting hikes and animals, or interesting history or sites nearby, or to have a little more than that, one has to be a little pickier. Many rural areas of France are incredibly tranquil but not very intriguing. Many charming towns in France are isolated from other areas by nothing but farmland, despite their inherent beauty. According to the World Bank's compilation of development indicators, France's rural population (as a percentage of the country's total population) was recorded as 19.02 percent in 2020.

Louis XIV was one of France's most important rulers. With a reign that lasted 72 years and 110 days, Louis the Great, sometimes known as the Sun King, had the longest of all European kings. He continued his predecessors' efforts of consolidating the state under the control of the capital, eradicating the last vestiges of feudalism, and forcing the nobles to transfer to the Palace of Versailles during this period of absolutism on the continent. The other major ruler was Napoleon I. Napoleon Bonaparte rose to fame as a powerful military and political commander during the French Revolution and the Revolutionary Wars. In November 1799, he planned a coup, and as a result, he was appointed First Consul of the Republic.

Communication in France is formal. However, deep human relationships are concealed behind the surface of French communication. Therefore, while speaking to a French individual, consideration must be given to language, gestures, and emotion. Importantly, using English is preferable if a person cannot speak French without creating misunderstandings. When meeting friends in France, it's customary to give each other kisses on both cheeks. The "thumbs up" gesture, which denotes approval, is also one example of nonverbal communication that is similar between France and the United States.

The fundamental principles of French society are reflected in the country's motto, "Liberty, Equality, and Fraternity." The French place a high value on equality and cohesion. France continues to be a major force on the European continent as the biggest country in Western Europe and one of the top economies in the region. Modern Western culture has been inspired by French Enlightenment-era concepts like rationality, democracy, and liberty. French people nowadays tend to be formal, respectful, and intellectually and artistically inclined.

The French pride themselves on being honest, open, and loving. Silence is often preferred in France as compared to pointless chit-chat. Foreigners who engage in small conversation may find this uncomfortable. They are merely reserved and formal with people they don't know; it's not that they are hostile. French people place a high value on manners, which may be challenging for foreign tourists. Foreigners are always advised to say "please," "thank you," and "you're welcome" when the opportunity arises.

Although complex, France's contemporary social structure is typically similar to Western nations. Socioeconomic classes are still somewhat present. These groups, together with the surviving industrial working class, possess substantial political clout that they exercise as needed. In France nowadays, social status is often determined by one's occupation and money.

Since its foundation, France has been grounded on Christianity, especially its Catholic heritage. The most beautiful structures in medieval France were not its castles and palaces but rather its enormous cathedrals and, in certain cases, even its little churches. Frescoes and altarpieces were painted by the best painters and artisans of the time, and gorgeous stained glass was made. The effort by the Revolution to supplant Christian culture with a new revolutionary culture failed, and throughout the nineteenth century, Catholicism—or protests against it—dominated French art, literature, and music. While religion was not a key topic in many major works of art or literature (though it was in many lesser ones), it inspired many of France's greatest musicians in the 19th century.

In France, there are several subcategories within the highly centralized education system. Primary, secondary, and higher education are the three major divisions. In France, age 2 is often the starting point for a child's education. Preschool is where two-year-olds begin their education. A child in France begins elementary school at age six and quickly advances to higher grade levels until they graduate. The Ministry of National Education oversees the regulation of all educational initiatives in France (Irajizadeh, Tavassoli Naini & Radan Jebeli, 2020). The Minister of National Education is the executive officer of the ministry. The Ministry of Education is the biggest employer in the nation since the state employs all teachers in public elementary and secondary schools as civil employees. In France's universities, the government also employs professors and researchers.

The official language is French, which is spoken as a first language by 88 percent of the population. Only around 2.5 percent of the population speaks German dialects, most of whom live in the eastern areas of Moselle. Around 100,000 individuals speak the Flemish language in France's north-eastern region, which accounts for 0.3 percent of the country's total population. Around one million individuals also speak Italian and reside near the border with Italy. This accounts for 1.8 percent of the total population.

France has well-structured, highly organized business organizations. Therefore, effectiveness or flexibility are preferred above regulations, administrative procedures, and meeting administration. Careful planning and preparation, which includes laying out all goals and tactics and confirming a plan, is one of the most crucial elements. Agendas for meetings in France often have a set format and are not adaptable. All participants are expected to participate in the conversation, so it's critical that one pays attention and be ready to voice your opinions.

The French like lengthy, leisurely meals. The norm is leisurely lunches, three-hour dinners, and countless hours spent at outdoor cafés. They follow the law and maintain a 35-hour workday and a 36-hour eating week. In France, like top sportsmen, chefs are equally well-known. The French have a light breakfast to start their day. Usually, there is a croissant, a roll with butter and jam, and hot cocoa or tea. French cafés and brasseries offer light fare and a haven from the overabundance of churches and museums. The opening hour is often 7 am; however, the closing time varies greatly.

Businesses in France often use hierarchical structures and concentrate their operations. The choices that affect the whole company are at the highest level. The boss of the firm will have a position of power. Maintaining a professional demeanor is highly valued in France and is often the key to gaining acceptance among French coworkers. Even though the French place high importance on manual effort, workaholism is often looked down upon in French culture. A typical workweek in France consists of 35 hours in length. Most French individuals do not like discussing work-related matters over dinner. Dinner is considered a social event since it is a time to enjoy food, drinks, and conversation with others.

The exchange of pleasantries is important in French culture. Therefore, it is essential to welcome individuals in a kind and respectful manner to provide a positive first impression. Handshakes are common etiquette when meeting new people or doing business with them. Extending a handshake to everyone as you enter the room and leave is customary. The most common greeting among family members and close friends is "la bise" (kiss on both cheeks). The la bise is performed by rubbing one's cheek on the cheek of another individual while making kissing noises and then repeating the process on the other side. It's not uncommon for a la bise to be followed by a hug. The region of France determines the number of kisses that are shared during an a la bise.

The French take tremendous pride in their appearance as a reflection of France's status as a cultural and fashion capital of the world. While conducting business, it is important to dress professionally by donning a suit or a dress. Avoid bright colors and stick to darker, more intricate patterns while choosing your clothing. In the professional setting, it is inappropriate for males to remove their suit coats or loosen their ties. Wearing Jewelry that is very flashy or ostentatious is not acceptable for ladies.

In France, negotiations can either be done by lone negotiators or teams of negotiators. Visitors and traders will likely plan meetings at least two weeks in advance. Give the French information on participants' names, positions, and duties in advance since they want to know who they will be meeting. While establishing a plan in advance is advised, it is not always essential. Meetings may not always begin on time, but the French generally expect international guests to arrive on time. Do not arrive more than 10 to 15 minutes late if you must.

In French business culture, cards are handed out immediately following an introduction. Given the hierarchical nature of French culture, a business card's designations are often lengthy. Academic credentials and the precise position within the organization, therefore, matter a lot. But be careful—titles are never spoken aloud. Instead, they are subtly pulled from the business cards, increasing their significance (Glinkowska-Krauze, Chebotarov & Chebotarov, 2020). It is unquestionably advantageous to get the business card translated into French. The style ought to be dignified. French business cards often differ in size from the global standard for credit cards.

The fact that CST and Paris are in separate time zones must be taken into account when scheduling a call. Paris is 8 hours ahead of CST. The most practical time for a conference call or meeting, if you are in CST, is between 10:00 am, and 11:00 am. This will be the typical working hour in Paris between 5:00 and 6:00 pm. One can also plan a call between 10:00 pm and 2:00 pm if they need to get in touch with someone in Paris and are available at any time. It will be between 6:00 am and 10:00 pm Paris time during this period.

The first public railway in France was officially launched on October 1, 1828. This came just a year after it had been put into service. The French network consists of nearly 30,000 kilometers (km) of lines, including 2,600 kilometers (km) of high-speed lines and 3,000 stations. As a result of deteriorating track conditions, the movement of trains is impeded across 5,000 kilometers of rail lines. The French national train business, known as SNCF, is at the center of the efforts being made by the government to modernize the rail transportation infrastructure.

There are primarily four different kinds of roads in France. For long trips, main French highways, sometimes known as "N" roads or Route Nationale, are a viable substitute for toll roads. Of course, they are slower than toll roads, but they are often straight and empty, making them a pleasant alternative. D roads are considered to be minor roads. When traveling within a locality, they may sometimes be perfectly appropriate routes, particularly in populated locations like the Dordogne or the Côte d'Azur. However, they are not advised for long-distance travel.

In France, the four major bus companies are Isilines, Flixbus, Eurolines, and Ouibus. Previously, long-distance bus lines were also offered by Megabus and Starshipper, but Flixbus and Ouibus combined their networks. In addition to these four major airlines, the Spanish bus firm Alsa provides buses from Spain and the rest of Europe but does not operate any internal routes.

The French waterway system has 80 canals and rivers totaling more than 7,000 kilometers. Numerous trips are conceivable, either along a single canal or other related waterways.

The first flight in France was recorded by Louis Blériot in 1909, marking the beginning of the country's aviation history. In 2004, there were around 478 airports in France. Aéroports de Paris is one of the airspace governance organizations operating in France. It manages 14 airports, including the two busiest in the nation, Orly Airport and Charles de Gaulle Airport.

France, a member of the European Union, is one of the 23 nations that use the euro (abbreviated €) as their national currency. Seven notes are in use, and one euro is divided into 100 cents (Clark & Mefteh-Wali, 2018). Although many businesses in the city accept Visa and Mastercard, some have a minimum purchase requirement. Discover cards are often not accepted, whereas American Express cards are accepted to a lesser degree.

France has contributed significantly to the growth of the Economic and Monetary Union (EMU) and the European Community (E.C.) in both positive and negative ways. The French, who founded the European communities, were also the most vocal critics of how the market was heading. The French were skeptical of the supranationalism and economic liberalism of the 1957 Treaty of Rome due to the country's powerful Gaullist and Communist parties. Only as far as France, the dissident partner, wished could European integration advance. Since the Second World War, France's monetary policy has been a politically and socially touchy subject. The special strength of the French Communist Party (PCF) in the labor movement and working-class was reflected in this. Postwar governments used managed credit, monetary inflation, and devaluation to maintain prosperity and ensure social harmony.

Value Added Tax (VAT) is a tax that is added to the price of products in France and varies from 12 percent for necessities to 33 percent for luxury goods. France's average exchange rate versus the U.S. dollar in June 2022 was 0.946 (EUR/USD), down from 0.946 (EUR/USD) in the previous month. However, if you live outside of the E.U., you may be eligible for a VAT refund on some transactions.

The French government supports a well-balanced, protects societal sensibilities and preferences, and encourages adherence to the Paris Agreement. This agreement allows access for French companies to international markets, protects societal sensibilities, and ensures access for French companies.

France plays a significant role in world trade. According to the WTO, 2020, commerce accounts for 58 percent of the nation's GDP, making it the world's ninth-largest exporter and seventh-largest importer of goods. France exports automobiles, food (wine), pharmaceuticals, hydrocarbons, and electronic parts.

France imports mostly chemicals, fragrances, cosmetics, metal products, natural hydrocarbons, toys, Jewelry, furniture, medicines, plastic goods, computer, and transport equipment.

For businesses looking to join the French market, France's regulations and bureaucratic processes may be challenging; therefore, U.S. exporters must pay particular attention to these regulations. Many American goods have challenges entering other markets due to complex safety regulations that are sometimes severely implemented but are not discriminatory.

i. Executive Branch

French is a semi-presidential and democratic country. The President of the Republic (now Emmanuel Macron), who serves as the head of state and is elected for a term of five years, and the Prime Minister, who serves as the head of the government, are the two leaders of the executive arm of the French government.

ii. Shadow Cabinet of France

Le cabinet fantôme, the French term for the Westminster system's "shadow cabinet," is not a term with a long history in France. At various points, a few opposition M.P.s have attempted to establish a comparable contre-government, but this hasn't persisted. The most recent unsuccessful effort was made in 2018 by the then-leader of Les Républicains, Laurent Wauquie.

iii. Legislative Branch

The National Assembly is the most important body in the French Parliament, which consists of two houses: the Senate and the National Assembly. Every year, Parliament convenes for one nine-month session; in exceptional cases, the President may call for an extra session (Bulteau, Feuillet & Le Boennec, 2018). The National Assembly may still overthrow a government if the majority of the whole Assembly membership votes, even if its legislative authority has decreased from that of the Fourth Republic.

iv. Local Governments

The regions, departments, communes, and overseas territories make up the primary territorial collectivities established by the constitution. The island of Corsica and the major cities of Paris, Lyon, and Marseille are among the few local administrations that fall under territorial collectivities with unique status, which have somewhat distinct administrative structures.

i. Private Law

In contrast to common law, the term "civil law" in France refers to private law when discussing the collection of legal systems that evolved from Roman Law and are collectively referred to as "civil law" (rules between private persons). In France, the inquisitorial model is utilized, and the role of the judge in overseeing the investigation and the collection of facts is motivated by a concern for the welfare of the community as a whole. Although one of the parties in a civil dispute is responsible for bearing the burden of proof under French law, the court, the other party, and the parties all work together to compile and present evidence. In civil trials, there is no strict standard of proof like in American law with the preponderance of the evidence; rather, the judge's first conviction is given priority based on the idea of "free review of the facts." In American law, the preponderance of the evidence is the standard of proof that must be met.

ii. Public Law

A particularly diverse and unique area of French law is public law. It covers all interactions between, with, or with the state, local governments, all public organizations, and administrative and regulating agencies. Public and administrative law is an essential area of law in France because of the significant role that the state and public entities play in the economy of France and Europe, whether as shareholders, contractual parties, or regulatory authorities. Public Law governs issues on laws and regulations, administrative matters, and public law contracts (such as public procurement processes and public service concession contracts). Public law also governs concerns with government funding, public assistance, the environment, urban planning, and public accountability.

iii. European Union Law

E.U. law refers to the body of laws that are in place to regulate the member states of the European Union. Since the European Coal and Steel Community was created following World War II, the European Union (E.U.) has had the purpose to "promote peace, its principles, and the well-being of its peoples." This goal was originally given to the E.U. by the United Nations. The European Union (E.U.) has political structures and social and economic policies extending beyond national boundaries. This is done to encourage international collaboration and human development.

iv. Judicial Institutions

The two main arms of the court system—the judicial and administrative branches—comprise several different sorts of courts. The judicial branch is separate from the legislative and executive branches of government. Nevertheless, judges must interpret the law, and though rulings from higher courts do not bind lower courts, they still have some influence over them.

i. Taxes

The French Parliament votes on the annual budget each year, establishing the types of taxes that can be imposed and the rates at which they may be charged. In France, taxes, in the strict sense of the word, are combined with social security contributions. The government and local collectivities are in charge of collecting the majority of the taxes, while Social Security is in charge of collecting the social deductions. There is a difference between social contributions, a portion of the total payment paid by an employer when he compensates an employee, and taxes, which apply to production, importations, wealth, and earnings.

ii. Trade Tariffs

France is one of the countries subject to the Common External Tariff (CET). Therefore, tariffs and duty rates can change suddenly and without prior notification.

iii. Labor laws

French labor laws provide a robust and long-standing level of employee protection, from negotiating employment contracts to understanding maternity leave, unions, and retirement. France offers a 35-hour workday and a minimum pay greater than the national average. The rights and obligations of private citizens, labor organizations, and businesses are outlined in the French Labor Code.

iv. Development Priorities

The three documents that serve as the framework for France's development policy are the Addis Ababa Action Agenda on Financing for Development, Paris Climate Agreement, and the 2030 Agenda for Sustainable Development. All three of these documents were approved by the United Nations General Assembly in September 2015. It was included in the New European Consensus on Development, which was accepted in 2017.

v. Elections and the Ruling Government

One of the locations where modern democracy was born in France. The Constitution of the Fifth Republic, which was adopted in 1958, governs France at the moment. France has a presidential/parliamentary political system and is both a republic and a parliamentary democracy. The French President, who also serves as head of government, selects the Prime Minister as head of state. The French Constitution's regulations are followed while conducting elections. Elections are conducted on Sundays. The campaigns stop at midnight on the Friday before the election, and no polls or electoral publications, or broadcasts are allowed on election Sunday per the legislation.

vi. Terrorism

France remains a crucial partner to the United States in the fight against terrorism.

France is a steadfast and significant member of the Global Coalition to Defeat ISIS, and it provides financial support to the Global Coalition to Defeat ISIS Financial Fund (GCERF). There is still a serious threat posed by terrorists, especially with the unpredicted attacks that have occurred in recent years. Attacks may occur randomly, even in places like shopping malls, nightclubs, public transit, and religious buildings tourists visit. Most attack methods include everything from stabbings to shootings to bombings to driving vehicles into crowds of people (Rabaud & Nitsch, 2019). As a direct response to the ongoing threat posed to France by Islamist terrorist organizations and the recent involvement of the French military in the fight against Daesh, the French government has issued a warning to the general public, urging them to increase their level of vigilance. It has also increased the security measures in place within France's borders.

France is the world's sixth-largest investor and the fifth-largest economy. Investors wishing to invest in France have access to many business opportunities. Furthermore, the region has a demonstrated history of successfully attracting and retaining important talent and multinational enterprises. In addition to having a robust population, France has a sophisticated and free market. It is considered to be a significant economic force on a global scale. As a founding member of the European Union and the Eurozone, France enjoys direct access to the single European market and partners inside the E.U. In terms of the creation of new businesses, France is a booming market. Station F is the biggest start-up campus in the world, and it is one of the reasons why France is attracting a growing number of enterprises from other countries. France is home to an extensive network of incubators and accelerators. France makes life simpler for businesses with an action plan to support corporate development and simplify the business climate. Based on the above discussion, it is evident that France is a lucrative market that any foreign investor or business should consider capitalizing on.

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