Having a good understanding of the international business culture is one of the keys to ensuring that global organizations are successful. As companies go to new markets, they need to not only master the regulations of the markets, but also the culture of the target market. Culture is vital in most of the foreign countries and often varies. Before entering into any foreign market, it is critical for businesses to conduct an analysis of the international business culture to ensure that there is growth in relationships and to develop overseas international models that are successful one of the most attractive markets for international businesses in France.
Background of France
France is considered to be one of the most highly-developed and modern countries in the world. It has one of the biggest economies and is one of the leaders among the nations in Europe. Even though the country is proud of its independence and rich history, the leaders of the country are increasingly trying to link the future of the country with the continuous development of the European Union.
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French is the national language of the country and is highly seen as a sign of the country’s culture. The country is well known for stimulating is economy through investments in small companies and start-ups. The initiative has made the country to have one of the most generous government subsidies and tax credit schemes in the region. Therefore, it is considered to be an ideal environment for small companies and start-ups to invest in. In addition, the CIR tax credit (Credit Import Recherche) and the JEI status or Jeune Entreprise Innovante ensure that companies which are entering the market are able to enjoy various tax exemptions that include the reduction in the French social security contribution in the first few years. Such a generous scheme has encouraged big companies such as Microsoft and Google to set up their research and development centres in Paris. However, international companies entering the market expect to face one main challenge that relates to paperwork and bureaucracy. There is also need for the businesses to understand the cultural environment of the country.
Cultural Environment in France
The values and attitudes are considered to be the foundation of the culture of every country and are also the building bricks for ensuring the success of a business culture. Cultural influences, behaviors and attitudes, and communities often vary across ethnicities and nations. Business people who intend to profit from investing in France need to learn about the customs, history, and culture of the country. Cultural adaptation and flexibility need to be the main principles that guide companies that want to do business in the country.
The cultural environment of the country includes valuing corporate social responsibilities. The environmental outlook of the country looks positive because the government of the country has a history of being committed to protecting the environment. The government is still expected to continue with the trend in the future as it is the leader in adopting the green paper by the European Commission which expects that all the listed companies to publish information that is related to the social and environmental impact of their activities in their yearly reports. It means that companies in the country are expected to report their use of natural resources and water, energy consumption, and their greenhouse gases emissions. In addition, companies are expected to report their efforts in reducing environmental risks and to create awareness among the workers about methods of managing the environment ( Taylor, 2003) .
Another cultural factor that needs to be considered by businesses that want to operate in France is punctuality (Gundolf, 2013) . While doing business in the country, it is vital to note that punctuality is highly appreciated. It is not common in France to visit someone without prior notice because such conduct is considered to be rudeness, despite the occasion. However, staying quite late at the office is a common thing in the country, especially for those who are in positions that are more senior.
Giving gifts to people who are conducting businesses together is a culture that is not common in the country ( Gordon, 1996 ). To express appreciation to another business person, it is better to host a dinner or a special event as opposed to giving a business gift. However, gifts are expected at social events, especially when thanking the host of a private dinner event.
Another culture in the country that needs to be taken into consideration relates to the business dress code. Appearance and fashion are more important in France when compared to other countries around the world. Dress in this country tends to be formal for people in both business and social situations. People in the country often perceive the way people dress as a reflection of their social status ( Kenna, 1994) . Conservative and high-quality accessories and suits are usually recommended for business people.
The Political, Economic and Legal Environment, Geography, FDI, Corruption, Business Ethics
Political Environment
France is a country that is politically stable and political violence is not common. Occasionally, the country experiences large demonstrations and protests but often do not result in violence. In addition, businesses do not expect to experience any confrontational approach during labor disputes because of the introduction of the labor law of 2014 ( Szarka, 2002) . The introduction of the law ensures that there are negotiated settlements over any form of conflict.
Legal and Economic Environment
Companies operating in France are expected to follow the law of the country such as registering their companies and paying taxes. In addition, the companies are expected to follow the employment law of the country by making sure that the process is fair. The legal system of the country states that domestic and foreign companies have the right to start and own businesses in the country (Mohamed, 2014) . An economic overview of the country indicates that France is one of the biggest economic powers around the world. The country is also encouraging investments in the country by renewing economic partnerships.
FDI
Foreign Direct Investment IN France has increased and is at an average of 2829.25 EUR Million from 1993 until 2018. The highest figure that has been reported over the period was in June 2008 where it was 20881 EUR Million.
Business Ethics
The business ethics is France is closely related to the culture of the country where punctuality is considered too vital in making sure that there are good business relations. In addition, gifts among people who are doing business are not allowed. Finally, the country considers it ethical when people take note of fashion and appearance. The dress code of people is mostly formal for people in both business and social events.
Corruption
France is considered to be among the top 25 countries in the world that are least corrupt. The ranking is as a result of the regulations, penalties, and laws of the country that help in preventing corruption ( Verbeke, 2013) . In addition, the legal system of the country has had various investigations and has successfully made convictions of corrupt businessmen and officials. It is worth noting that the OECD Anti-Bribery Convention has been adopted and enforced by the country since the year 2000.
Geography
Geographically, France is the biggest country in Western Europe and has a gateway between the northern and southern regions of the region. The lengthy borders of the country touch Belgium and German at the north, the Pyrenees Mountains and Spain in the south, andin the West there is the Atlantic Ocean. The country also borders Italy, the Alps, and Switzerland, and the southeast there is the Mediterranean Sea. It means that the country is strategically located on the continent to enable it to trade with other countries that are surrounding it.
Viewpoint as a Trading Partner, Direction and Terms of Trade, Government Policies, Attractiveness as a Place for Foreign Venture
Viewpoint as a Trading Partner
An analysis of France indicates that it is a country that economically developed and has a large, sophisticated, and diverse consumer base. Even though the manufacturing industry was seen to be declining in 2017, much of the industries such as pharmaceuticals and aerospace are still considered to be among the leaders around the world and are receptive to foreign suppliers and partners. In addition, the latest figures indicate that the country shipped around 3.3% of the global exports in the year 2017 which represents a big percentage. Much of its exports go to other European countries.
Government Procedures on Global Trade
The government of France supports a trade policy which is balanced and which ensures that French businesses can be able to access foreign markets and at the same time that which aims at preserving preferences and collective sensitivities. The government also aims at helping companies in France to be able to access foreign markets so that they can be in a position to develop their exports and make sure that there is an outlet of their product. The government also aims at making sure that local companies are able to maintain their competitiveness.
Direction and Terms of Trade
The government of France is strategically located in Europe and thus encouraged trade with its neighbors. However, It highly encourages local companies to take advantage of the free trade to export goods. In addition, it encourages foreign direct investments in the country by relaxing the terms of trade by encouraging free trade with other European Countries.
Attractiveness as a Sight for Foreign Investment
France is highly dedicated to encouraging foreign investment which is a big attraction to companies. In the current economic environment, the government considers foreign investments as a way of ensuring that there is growth in investment and as a way of ensuring that there is the creation of jobs. The country has a number of incentives for foreign investors which can be considered to be a major attraction such as good infrastructure, a productive and skilled labor force, the central location of the country in Europe, and technology.
The French policy is considered to be the least restrictive in the world because there are no statutory limitations to the level of foreign ownership of businesses. Foreign companies have also been provided the right to build and own businesses (Kerhuel, 2009) . However, some of the factors that need to be considered by foreign investors include the high cost of labor, its tax environment, and the rigid labor market as they can hinder the success of foreign investors.
Participation in Cross-Nation Cooperation and Agreements, FTAs, Regional Trading Blocks
Participation in Cross-Nation Cooperation and Agreements
France has entered into agreements which encourage cross-nation cooperation and trade. The country is a participant of the World Trade Organization (WTO) and the WCO (customs), and the OECD which allow for free trade between member states.
Regional Trading Blocks
As indicated above, France is strategically located in Europe where it can access other European countries ( Mucchielli, 2004) . The strategic location ensures that there is free trade between the countries. This has been made even more possible because of the fact that the country is a member of the European Union. Therefore, it is clear that there are no regional trading blocks that affect the country.
FTAs
Free trade agreements are well known for being potential for growth in the country. France is part of the European Union which encourages free trade among the member states. In addition, the country strives to make sure that it negotiates agreements which are based on mutual profits and agreements. It aims at making sure that agreements cover the interests of the country and at the same time aim at conserving the country’s regulatory specifications.
Major Trends and Events Affecting the Country’s Standing
One of the major events that have been affecting the countries standing in the global business environment is the level of refugees and migration in the region. With an increase in the level of terror in the Middle East, the continent has seen an increase in refugees running from the conflict ( Laurence, 2006) . The increase has also seen a rise in the level of insecurity in the countries through terror attacks which has a negative effect on the country’s image as a conducive business environment.
Conclusion
From the analysis of France from the perspective of a business person, it is evident that it is an attractive place to invest in. The country encourages foreign investments and new companies through incentives such as exceptions on the initial taxes. In addition, the country is strategically located in Europe where companies can export goods to other countries. However, to ensure success in the country, businesses need to understand the culture of the country. They also need to analyze the current trends that affect the country in a negative manner so that they can come up with strategies to overcome the challenges.
References
Gordon, C. (1996). The business culture in France . Oxford: Butterworth-Heinemann.
Gundolf, K. (2013). Transmission of family businesses in France. International Journal Of Entrepreneurial Behavior & Research, pp.53-71.
Kenna, P., & Lacy, S. (1994). Business France: A practical guide to understanding French business culture . Lincolnwood, Ill., USA: Passport Books.
Kerhuel, A.-J. (2009). Is Law an Economic Contest? French Reactions to the Doing Business World Bank Reports and Economic Analysis of the Law. THE AMERICAN JOURNAL OF COMPARATIVE LAW, Pp. 811-830.
Laurence, J., & Vaïsse, J. (2006). Integrating Islam: Political and religious challenges in contemporary France . Washington, D.C: Brookings Institution Press.
Mohamed, C. (2014). France's new economic regulations: insights from institutional legitimacy theory. Accounting, Auditing & Accountability Journal, Vol. 27 Issue: 2, pp.283-316.
Mucchielli, J. L., & Mayer, T. (2004). Multinational firms' location and the new economic geography .
Szarka, J. (2002). The shaping of environmental policy in France . New York: Berghahn Books.
Taylor, S. A. (2003). Culture shock! France: [a guide to customs and etiquette] . Portland: Graphic Arts Center Publ.
Verbeke, A. (2013). International Business Strategy . Cambridge: Cambridge University Press.
