economy of france final

8/14/2019 Economy of France Final

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Economy of FranceEconomy of France

Presented to:Presented to:

MadamMadam

RanaRanaFareedFareedPresented by:Presented by:

MairaMairaSiddiquiSiddiquiSamreenSamreen

ShaikhShaikh


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IntroductionIntroduction

FranceFrance is one of theis one of thelargest economies in thelargest economies in theworld:, behind the Unitedworld:, behind the UnitedStates, Japan, China andStates, Japan, China andGermany.Germany.

International MonetaryInternational MonetaryFund data rank the FrenchFund data rank the Frencheconomy eighth largest byeconomy eighth largest bypurchasing power paritypurchasing power parity(PPP) in 2007.(PPP) in 2007.

The World Bank, in 2008,The World Bank, in 2008,estimated France's GDP inestimated France's GDP in2006 to be seventh largest2006 to be seventh largestin the world by PPP.in the world by PPP.

Rankings published by theRankings published by theCIA World Fact book inCIA World Fact book in

2008 determine France's2008 determine France'sGDP, to be the eighthGDP, to be the eighth


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Dirigisme and decline ofDirigisme and decline ofdirigismedirigisme

DirigismeDirigisme (from the French) (in English also "dirigism") is an(from the French) (in English also "dirigism") is aneconomic term designating an economy where theeconomic term designating an economy where thegovernment exerts strong directive influence.government exerts strong directive influence.

This program ofThis program ofdirigismedirigisme, mostly implemented by right-, mostly implemented by right-

wing governments, involved the state control of a certainwing governments, involved the state control of a certainindustries, such as transportation, energy andindustries, such as transportation, energy andtelecommunication infrastructures.telecommunication infrastructures.

However,However, dirigismedirigisme came to be highly contested after 1982came to be highly contested after 1982when governmental control increased in the economy,when governmental control increased in the economy,nationalizing many industries and private banks.nationalizing many industries and private banks.

By 1983 with the initial bad economic results theBy 1983 with the initial bad economic results thegovernment decided to renouncegovernment decided to renounce dirigismedirigisme and start theand start theera of rigueur ("rigor") or corporatization.era of rigueur ("rigor") or corporatization.

As a result the government largely retreated from economicAs a result the government largely retreated from economicintervention;intervention; dirigismedirigisme has now essentially receded thoughhas now essentially receded thoughsome of its traits remain.some of its traits remain.


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Dirigisme and decline ofDirigisme and decline ofdirigismedirigisme

Despite significant liberalization overDespite significant liberalization overthe past 15 years, the governmentthe past 15 years, the governmentcontinues to play a significant role incontinues to play a significant role inthe economy: government spending,the economy: government spending,at 53% of GDP in 2001, is the highestat 53% of GDP in 2001, is the highestin the G-7.in the G-7.

Labor conditions and wages areLabor conditions and wages arehighly regulated.highly regulated.

The government continues to ownThe government continues to own

shares in corporations in a range ofshares in corporations in a range of


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Poverty in FrancePoverty in France

Poverty in FrancePoverty in France has fallen by 60% over thirty years.has fallen by 60% over thirty years.Although it affected 15% of the population in 1970, in 2001Although it affected 15% of the population in 1970, in 2001only 6.1% were below the poverty line.only 6.1% were below the poverty line.

BidonvillesBidonvilles

Although poverty seems to have decreased overall, a formAlthough poverty seems to have decreased overall, a formof extreme misery has reappeared in the 2000s.of extreme misery has reappeared in the 2000s.

The media have attracted attention toThe media have attracted attention to bidonvillesbidonvilles (shanty(shantytowns-illegal or unauthorized), which were thought to havetowns-illegal or unauthorized), which were thought to have

disappeared in the 1970s, with the transformation ofdisappeared in the 1970s, with the transformation ofNanterre's bidonville into a modern city.Nanterre's bidonville into a modern city.


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Sectors of the EconomySectors of the Economy- Industry- Industry

Leading industrial sectors in FranceLeading industrial sectors in Franceare telecommunications (includingare telecommunications (includingcommunication satellites), aerospacecommunication satellites), aerospace

and defense, ship building (naval andand defense, ship building (naval andspecialist ships), pharmaceuticals,specialist ships), pharmaceuticals,construction and civil engineering,construction and civil engineering,

chemicals, and automobilechemicals, and automobileproduction.production.

Research and development spendingResearch and development spending

is also high in France at 2.3% of GDP.is also high in France at 2.3% of GDP.


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Sectors of the EconomySectors of the Economy- Energy- Energy

With no domestic oilWith no domestic oilproduction, France has reliedproduction, France has reliedheavily on the development ofheavily on the development ofnuclear power, which nownuclear power, which nowaccounts for about 78% of theaccounts for about 78% of thecountry's electricitycountry's electricityproduction, up from only 8%production, up from only 8%in 1973, 24% in 1980, andin 1973, 24% in 1980, and75% in 1990.75% in 1990.

In 2006 the net production ofIn 2006 the net production ofelectricity in France amountedelectricity in France amountedto 548.8 TWh, of which:to 548.8 TWh, of which:

(78.1%) were produced by(78.1%) were produced bynuclearnuclear power generationpower generation (11.1%) by(11.1%) by hydroelectrichydroelectric

power generationpower generation (9.5%) by(9.5%) by fossil fuelfossil fuel powerpower

generationgeneration 6.9 TWh (1.3%) by other6.9 TWh (1.3%) by other

types of power generationtypes of power generation(essentially(essentially waste-to-energywaste-to-energy


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Sectors of the EconomySectors of the Economy- Energy- Energy

Nuclear power in FranceNuclear power in France

In France, as of 2002,In France, as of 2002,Electricit de France (EDF)Electricit de France (EDF) the country's main the country's mainelectricity generation andelectricity generation and

Distribution CompanyDistribution Companymanages the country's 59manages the country's 59nuclear power plants.nuclear power plants.

France is the world'sFrance is the world'slargest net exporter oflargest net exporter ofelectric power, exportingelectric power, exporting

18% of its total production18% of its total production(about 100 TWh) to Italy,(about 100 TWh) to Italy,the Netherlands, Britain,the Netherlands, Britain,and Germany, and itsand Germany, and itselectricity cost is amongelectricity cost is amongthe lowest in Europe.the lowest in Europe.


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Sectors of the EconomySectors of the Economy- Agriculture- Agriculture

France is the European Union's leadingFrance is the European Union's leadingagricultural producer, accounting for aboutagricultural producer, accounting for aboutone-third of all agricultural land within theone-third of all agricultural land within theEU.EU.

Northern France is characterized by largeNorthern France is characterized by largewheat farms. Dairy products, pork, poultry,wheat farms. Dairy products, pork, poultry,and apple production are concentrated inand apple production are concentrated in

the western region.the western region.

France is the world's sixth-largestFrance is the world's sixth-largestagricultural producer and the second-agricultural producer and the second-

largest agricultural exporter, after thelargest agricultural exporter, after theUnited States.United States.


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Sectors of the EconomySectors of the Economy- Agriculture- Agriculture

The destination of 70% of its exports is other EUThe destination of 70% of its exports is other EUmember states and many poor African countriesmember states and many poor African countrieswhich face serious food shortage.which face serious food shortage.

The French agricultural sector is heavilyThe French agricultural sector is heavilydependent upon subsidies from the Europeandependent upon subsidies from the EuropeanUnion, which account for 11 billion.Union, which account for 11 billion.

France is the main country in the EU that isFrance is the main country in the EU that isagainst the reduction of subsidies. Subsidies haveagainst the reduction of subsidies. Subsidies havegiven France a competitive advantage which alsogiven France a competitive advantage which alsodemotes the concept of free trade.demotes the concept of free trade.


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Sectors of the EconomySectors of the Economy- Tourism- Tourism

As France is the most visited countryAs France is the most visited countryin the world with over 75 millionin the world with over 75 millionvisitors a year,visitors a year, tourism is atourism is a

significant contributor to the Frenchsignificant contributor to the FrenchEconomy.Economy.

f hS f h E


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Sectors of the EconomySectors of the Economy- Weapons Industry- Weapons Industry

France is the third largest weaponsFrance is the third largest weaponssupplier in the world.supplier in the world.

In addition, external demand plays aIn addition, external demand plays abig part in the growth of this sector:big part in the growth of this sector:for example, France exports greatfor example, France exports greatquantities of weaponry to the Unitedquantities of weaponry to the UnitedArab Emirates, Greece, India,Arab Emirates, Greece, India,Pakistan, Taiwan, Singapore andPakistan, Taiwan, Singapore and

many others.many others.

S f hS t f th E


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Sectors of the EconomySectors of the Economy- External Trade- External Trade

France is the third-largest trading nation inFrance is the third-largest trading nation inWestern Europe (after Germany and theWestern Europe (after Germany and theUnited Kingdom).United Kingdom).

Its foreign trade balance for goods hadIts foreign trade balance for goods hadbeen in surplus from 1992 until 2001,been in surplus from 1992 until 2001,reaching $25.4 billion in 1998; however,reaching $25.4 billion in 1998; however,the French balance of trade was hit by thethe French balance of trade was hit by the

economic downturn, and went into the redeconomic downturn, and went into the redin 2000, reaching US$15bn in deficit inin 2000, reaching US$15bn in deficit in2003.2003.

Trade with European Union countriesTrade with European Union countriesaccounts for 60% of French trade.accounts for 60% of French trade.

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Sectors of the EconomySectors of the Economy- External Trade- External Trade

In 1998, U.S.-France trade totaled about $47In 1998, U.S.-France trade totaled about $47billion--goods only.billion--goods only.

U.S. industrial chemicals, aircraft and engines,U.S. industrial chemicals, aircraft and engines,

electronic components, telecommunications,electronic components, telecommunications,computers and peripherals, analytical andcomputers and peripherals, analytical andscientific instrumentation, medical instrumentsscientific instrumentation, medical instrumentsand supplies, broadcasting equipment, andand supplies, broadcasting equipment, andfranchising are particularly attractive to Frenchfranchising are particularly attractive to French

importers.importers.

Principal French exports to the United States arePrincipal French exports to the United States areaircraft and engines, beverages, electricalaircraft and engines, beverages, electrical

equipment, chemicals, cosmetics, luxury productsequipment, chemicals, cosmetics, luxury productsand erfume. France is the ninth-lar est tradinand erfume. France is the ninth-lar est tradin

S f h ES t f th E


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Sectors of the EconomySectors of the Economy- Regions- RegionsEconomyEconomy

The most powerfulThe most powerful regionsregionsare Ile-de-France (4thare Ile-de-France (4thagglomerations for heragglomerations for hereconomy in the world),economy in the world),Rhnes-Alpes (industries,Rhnes-Alpes (industries,services, high-services, high-

technologies), Provence-technologies), Provence-Alpes-Ctes d'AzurAlpes-Ctes d'Azur(services, industries,(services, industries,tourisms and wines), Nord-tourisms and wines), Nord-Pas-de-Calais (industries)Pas-de-Calais (industries)and Pays de la Loire.and Pays de la Loire.

The rural area are mainlyThe rural area are mainlyin Auvergne, Limousin, andin Auvergne, Limousin, andCentre, and winesCentre, and winesproductions account for aproductions account for asignificant amount of thesignificant amount of theeconomy in Aquitaineeconomy in Aquitaine(Bordeaux(Bordeaux regionregion), and), andcham a ne forcham a ne for

economy of france final

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