Transcript The current state of French economy

The current state of French
economy
Helen Baskova, group 288
Language supervisor – lect. M.Nedogibchenko
French economy combines modern capitalistic
methods of management with extensive
government intervention.
Government retains considerable influence on
the key stakes in each sector, it has controlling
stakes in railways, power stations, air traffic and
telecommunications companies.
Since the 1990's, the government gradually
weakens the control over these sectors.
Government is slowly selling off part of its shares
in France Telecom, in Air France, in insurance,
banking, and in various industries. Meanwhile,
thanks to large areas of fertile land, plus the use of
modern technology, France became the leading
agricultural producer in Western Europe. But at the
same time, there has been persistently high
unemployment.
• Processes of
concentration and
centralization of
capital and the
restructuring of the
French economy
occur simultaneously
with the process of
internationalization
of production and
capital, which lead to
the creation of the
huge power of TNCs.
• "Imetal unites 62 public, active in
25 countries. In carmaker
Renault - almost 45% capacity
and 25% of the workforce are
focused on foreign companies,
etc.
• Centralization of capital on a
national and international level
led to a strengthening of a
number of French companies in
the world production. Chemical
company Pechiney has become a
world leader of packaging
products, printing firm Ashet "a leading publisher of magazines
in the world, the firm" Cubley de
Lyon moved into first place in
the world in production of
electrical cables.
Trade and Balance of Payments of France is traditionally
reduced to a negative balance. A deficit mainly due to
mineral raw materials, parts of chemical and consumer
goods, including consumer electronics. In the last decade
has worsened the balance of trade in manufactured goods.
Major gaps are formed in trade with Germany and Japan.
France actively proceed the restructuring
processes of social economic structure,
concentration and centralization of production
and capital. One hundred largest companies
are focusing more than 2 / 3 of industrial
production. In some industries the
monopolization of production is close to the
maximum. In two of the largest steel company
Yuzinor and Sasilor concentrated 70% of steel
production,Thompson - 50% of the production
of electronic and electrical equipment, Renault
and Peugeot - almost all production cars.
The services sector is
crucial for the value
sector of the economy of
France. It accounts for
over half of GDP and over
69% of all employees.
Services is the fastest
growing and the only
branch of the French
economy, where
employment continues to
grow.
Major services sectors
are trade, tourism,
communications,
transportation, banking
and insurance.
Forced to act in the face of fierce
competition, France made a bid to develop
research, production modernization,
development of new products and
equipment. Adaptation of industrial facilities
to the new rhythm of production is
accompanied by increased productivity.
Parallel branches were computerized and the
development of mathematical software,
which allowed to introduce in the production
of modern CAD systems and process control.
Thank you for attention