It is a good opportunity for U.S Businesses to invest in France because of its excellent location in Europe, good infrastructure, and high-educated workforce. France, located in Western Europe, is an excellent location for U.S Businesses to invest. Location is one of the most important variables in determining potential success to compete with other firms locally, regionally, and globally. A good location like France would generate the most valuable markets in Europe for U.S businesses. This country is not only the biggest one in the region in term of geographic size but it also borders with Luxembourg, Belgium, and Germany, a strong economic country in the region, in the north of France.
In the east, it borders with Switzerland, Italy and Monaco. In the south, it borders with Andorra and Spain. In the west, the Atlantic Ocean is the gateway for France to access to other continents. Its geography makes France a superb location for businesses. France exports nuclear power, airplane, and wine, machinery including computers, pharmaceuticals, iron, steel, and many other products 1. Its political system is democracy which is similar to the United States and other European countries. Thus, it is less likely for U.S firms to encounter country-risk of international business in France.
Economically, high supply and demand are important components in capitalism, and those two components keep crucial roles for businesses to succeed or survive in the market. When U.S businesses invest in France, they can compete with other firms in the European markets. Foreign Direct Investment in France is what U.S businesses should do in order to build their factories. Outsourcing local resources would help U.S Businesses to reduce input costs which can lead to lower price for global competition. In fact, some foreign firms have high return on investment when they invest in France.
Compared to other international firms, U.S businesses have advantages because the United States and France have a bilateral convention on investment and a bilateral tax treaty addressing, among other things, double taxation and tax evasion 2. By investing in France, U.S businesses not only enter the country market but also the whole European market, France is a member of European Union. Good Infrastructure of a country is also one of the most important factors that many international firms look for, and France can provide it for international firms.
France is being ranked as one of the best countries for having good infrastructure in Europe for businesses. Hard infrastructure consists of physical systems such as energy, transportation, telecommunications, water supply and sanitation that are needed to operate a country. When problems exist with the performance of infrastructure, the effects can be widespread to businesses. Fortunately, France has no problems. Thus, U.S Businesses can relocate their businesses to other areas if necessary. France has 58 nuclear power plants 3 to produce nuclear energy to supply for the country’s needs and export to other European countries.
It is clear that France Government uses its investment in infrastructure to dominate European market, especially in nuclear energy market. When U.S businesses operate in France, their manufacturers can be benefit from cheaper price of energy. American businesses can also become passive ownership of France securities of nuclear energy to generate financial returns. Transportation is another excellent factor of France’s infrastructure. With population of 67 million people 4, France transportation system can help businesses to increase productivity because workers spend less time to travel to workplaces. It is excellent when companies are searching for locations to build warehouses or open new markets with the appropriate transportation infrastructure for their business needs. Good transportation also provides manufacturers, suppliers or customers doing business faster in an industrial cluster.
Regionally, manufacturers can deliver their products to Germany, Luxembourg and Belgium in the north, Switzerland, Italy and Monaco in the east, Andorra and Spain in the south. All roads are paved and connected. In ocean transportation, U.S manufacturers can use France seaports to ship finished-goods back home or to ship to other continents. France has high-quality communications infrastructure which are very important for businesses to maintain their communication channels worldwide. Hard infrastructure has a direct impact on businesses while soft infrastructure, such as education, has a secondary impact and is important as well.
France’s educated-workforce is on the raise again dues to its educational reform. In the previous years, French enjoyed its reputation for having one of the best educational systems in the world. The system focused on traditional methods of learning, high academic standards and strict discipline. Universities are comprehensive academic research and training institutions. In 2012, France was ranked ahead of both Germany and the United Kingdom in productivity. Its productivity rates per worker beats the European average by 20 percentage 5.
However, its educated workforce is declined because its older workforce lacked of digital skills 6 which play important roles in modern high quality workforce. This created trouble for France’s economy because many businesses could not find enough high skilled workers to fill positions. To solve this problem, the country invests heavily on its education with approximately 6.1 percent of the country’s Gross Domestic Product compare to 5.9 percent 7 in the year 2010. Educated workers usually perform well and demonstrate the desire to complete tasks. France is focusing on its educational improvement to have enough high-quality workforce 8 in order to meet the French Government’s “Innovation 2030 Worldwide Challenge” competition 9.
Establishing communication with French universities would be a good one for recruitment. Setting up long-term business with universities can lead to more systemic return on investment. This strategy is better than taking applications from applicants randomly. It would establish France universities and U.S Businesses’ relationships. Over time, U.S Businesses can require France universities to educate proper programs for their businesses. France is a good country for U.S Businesses to invest because this country has been an innovative one in the world.
Thus, it takes U.S businesses time to become succeed in France. By entering France market in early stage, U.S businesses could train and manage all different teams of skilled employees. Therefore, its high-quality workforce would bring huge benefit for U.S businesses in the long run. Businesses development includes the creation of long-term value for an organization from employees, customers, markets, and relationships. In advance, U.S businesses can build their competitive advantages in France market.
In conclusion, France is an excellent country for U.S Businesses to invest because of its superb location in Europe. This location provides U.S Businesses ability to access to other markets in the continent. France’s hard infrastructure is one of the best countries in the world. With its good infrastructure, U.S Businesses can be benefit from lower cost for energy because France has many nuclear power plants. This country also exports nuclear energy to other countries. In other word, France dominates nuclear energy in the region. U.S Businesses can gain profit by investing in its nuclear energy stock. Its good transportation system helps workers to save time from home to workplaces.
This can increase productivity for U.S Businesses. Their road systems are good for U.S Businesses to operate multiple facilities without delaying time. All roads are connected domestically and regionally. France telecommunication can provide stable network for U.S Businesses to stay in contact with each other. With soft infrastructure, France invests heavily for educational system to produce all different kinds of professionals to meet the country expectation in the future, “Innovation Worldwide Challenge 2030”. When U.S Businesses enter France in early stage, they can build their strongholds in the French market. Competitive advantages in France are U.S Businesses’ assets.