France international trade : International economics

Résumé du document

We have chosen to made research about the international trade of France. This country is perfectly integrated in the international trade and part of the biggest European exporting and importing countries since the Second World War II. The creations of the European Union and many international associations have contributed to their trade expansion. Nowadays France is the fifth-largest economy in the world.

Moreover the French case is currently interesting because France is facing a loss of competitiveness compared to other countries like for example Germany which manages better to keep on going is trade balance. This loss of competitiveness has lot of negative impacts on French economy with in particular a decline of exporting companies.

Nevertheless to face these many problems France set up new policies in order to enhance its trade balance in strong deficit. French government is trying to help SME to develop their activities abroad by helping them with different tools adapted to their needs. They also took the decision to develop their exportation's through developing countries whose the demand is growing and because their business is too much focus on the European Union. They also tend to help areas in which they get a comparative advantage following Ricardo and the factor-endowment theory. France applies government regulatory policies by offering for example subsidies to enhance competitiveness of Airbus.

Extraits

[...] Yet France will have to deal with tax on exports made outside the European Union. Then there is the euro exchange rate which is growing compare to the dollar which represents a handicap for their exportations. Indeed in euro, the French products are more and more expensive for a client paying in dollars. For example when 1 euro can be exchanged for dollars, an invoice of 1000€ costs to the buyer 1300 dollars. Nevertheless it doesn't have only bad effect because for example it allows reducing the importations costs and by the way reducing the oil invoice knowing that the barrels are sold in dollars. [...]

[...] France in spite of their handicap with several taxes tends to valorize its manufacturing sector which attracts most foreign capital. There is also an essentially attributable dynamism in the technological sectors and in the energy sector, which represents 73 projects in 2009, against 36 in 2007. The consequence of it is considerable for the employment and consequently for the national growth. Indeed these investments will allow to support and to create jobs (Greenaway, 2007). France initiatives to develop French SME trade activities abroad At a national level the French government has also established policies and takes initiatives to help in particular SME to develop their activities abroad (OECD, 2007). [...]

[...] There are also some supports from the OSEO which guarantee banking contests intended to finance the international activities of SME such as for example the investments financed by Middle term credits. Finally there is the NATIXIS which has set up Procedure of stabilization of the interest rates (Exporter, 2011). THE CONSEQUENCES OF INTERNATIONAL TRADE ON FRANCE Problems and challenges faced by France in international trade The main problem of France since approximately 2004 is that the importation's growth rate is above the exportation's one. [...]

[...] BIBLIOGRAPHY - WEBOGRAPHY Datamonitor France country profile, Datamonitor PLC, Europe. OECD The challenge of restoring French competitiveness, OECD publishing, Paris. France infrastructure report Swot analysis, France infrastructure report, European Union. OECD Removing Barriers to SME Access to International Markets, OECD publishing, Paris Wagner, J “Exports and productivity: A survey of the evidence from firm-level The World Economy, Vol No January. Greenaway, D. and R. Kneller (2007), “Firm Heterogeneity, Exporting and Foreign Direct Investment”, Economic Journal, Vol No February. Robert, J International economics, twelfth edition. [...]

[...] Nowadays France is the fifth-largest economy in the world. Distribution by countries Export and Import rank Sources: (ONU, 2009) Moreover the French case is currently interesting because France is facing a loss of competitiveness compared to other countries like for example Germany which manages better to keep on going is trade balance. This loss of competitiveness has lot of negative impacts on French economy with in particular a decline of exporting companies. Nevertheless to face these many problems France set up new policies in order to enhance its trade balance in strong deficit. [...]