France in search of a new identity
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Case Details:
Case Code : ECOA102
Case Length : 12 Pages
Period : 2003
Organization : Various
Pub Date : 2003
Teaching Note :Not Available
Countries : France, Europe
Industry : -
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
The political foundations of modern France went back to the 1789 revolution. The French became quite comfortable with the idea of state control over the economy in the 17th century when Louis XIV and his finance minister Jean Baptiste Colbert nationalized the tobacco industry...
Economic Policies
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The government had played a great role in the 30 years of spectacular economic growth after the Second World War, which rapidly industrialized a heavily rural economy. France became the world's fourth-largest industrial power, after America, Japan and Germany...
The Industry
France had a well-diversified manufacturing base. Among its important industries were steel, aluminum, chemicals, pharmaceuticals, motor vehicles, rail transport equipment, telecommunication equipment and aerospace. There were four important industrial clusters – Paris, Lyon, Marseille and Lille...
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Foreign Trade
After opening up its economy post Second World War, France over the years had emerged as one of the most important players in the global economy. In 2000, France exported goods worth $295.5 billion and imported goods valued at $294.4 billion...
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Foreign Investments
French government officials, saw foreign investment as a way to create jobs and stimulate growth. Investment regulations were simple. Various financial incentives were provided to foreign investors. The investment promotion agency, DATAR, provided assistance to potential investors...
Infrastructure
France had one of the densest and most efficient transportation networks in the world. Roads carried 60% of domestic freight, compared to 40% in 1970. Nearly 90% of passenger journeys were also made by road, mainly by private car, although use of public transport was rising sharply in the tourism industry... |
Concluding Notes
At the start of the new millennium, France remained a maverick within the OECD group. The country continued to disagree with the US in public; especially over the policies relating to the middle east...
Exhibits
Exhibit I: France: Macro Economic Indicators
Exhibit II: Comparative Analysis: Economic Indicators, 2001
Exhibit IV: France: Profile of International Trade
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