France in search of a new identity

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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.

Case Details:


Case Code : ECOA102 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Case Length : 12 Pages
Period : 2003
Organization : Various
Pub Date : 2003
Teaching Note : Not Available
Countries : France, Europe
Industry : -


France is one of the most developed countries in the world. Along with Germany, it has played a vital role in the creation of the euro. Even in an era of liberalisation, privatisation and globalisation, the French believe in a strong government. On one hand, the privatisation efforts continue, and on the other, the government still controls major firms in several sectors. High unemployment, a major social and economic problem in the country, has its roots in high tax rates and rigid labour markets. France also has a heavy pension burden. Excessive labour regulation has become a hindrance to investing in France. Of late, France's stance in international politics has been sending confusing signals.

The country remains an enigma. On one hand, it does not hesitate to criticise the US and on the other, many French companies follow a pro-US business model. The case illustrates the challenges which developed economies face in retaining their competitiveness.


  Page No.
Introduction 1
Background Note 2
Economic Policies 5
The Industry 7
Foreign Trade 9
Foreign Investments 10
Infrastructure 10
Concluding Notes 11


Country case study of France, Privatisation, Euro, Unemployment, Macroeconomics, Labour regulation, Jacques Chirac, Francois Mitterrand, Economic policies in France, Economic and Monetary Union, Maastricht Treaty, Labour productivity, Laurent Fabius

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