Analysis of Business Environment in France

Identifying a good business location

Identifying a good business location is a very complex process that requires an overall evaluation of different factors including population demographics, the level of competition, availability of labor, and the laws in the country. Notably, as one of the most developed states in the globe, France offers a very serene environment for establishing an enterprise.

Advantages

As a modernized society, establishing a business in France has different benefits to both overall performance and growth of the institution. During the financial year 2015-2016 the country was ranked 22nd in the world competitiveness list and it improved in some of its weaknesses including macroeconomic environment, good market efficiency labor. Primarily, the nation has a large market size, high-quality infrastructure and is buttressed by sophisticated businesses (World Economic Forum, 2018). It also emphasizes the innovative using methods of production and promotes health and primary education in the society. During the same accounting period, the French government also ensured that factors such as rigidity in goods, employment opportunities, and taxation policies are significantly improved to remove non-tariff barriers and encourage foreign investment. Equally, the reduced oil prices and the country’s recovery process provide a window for establishing a viable business at reduced budgets with potential growth (World Economic Forum, 2018). Other important factors that might promote a good business environment in France include its technological readiness, market size, business sophistication, and higher education and training.

Disadvantages

However, the country is still straggling to improve different aspects including enhancing a macroeconomic environment, labor market efficiency. Although the state has declared improvement in its labor codes, it is still struggling to make them desirable to attract investors. Moreover, macroeconomic factors such as inflation and government debt also limit the country’s competitions and productivity in the international market.

References

World Economic Forum. (2018). Economies. Retrieved November 30, 2018, from http://reports.weforum.org/global-competitiveness-report-2015-2016/economies/#indexId=GCI&economy=FRA