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The French economy is open to trade and investment.
In 2003, France had 36,6 billions euros of incoming Foreign direct investments and 48,6 billions euros outgoing foreign direct investments France welcomes foreign direct investments totalling in 2002 , 310 billions US$ (against 100 billions US $ in 1990) in 2002. France is the first place in Europe for incoming foreign investments. The sharp decrease of investments coming into Great Britain over the last two years explain this position. 75% of capital flow used to come from the European Union. Germany was then placed on 4th position and has now reached the first rank of investors in France and is today ahead of Great Britain.
Indeed, investors appreciate the quality of the French workforce, the high level of research, the mastery of high technology, stability of the currency and a good control of production costs.
In addition, the rate of corporate taxation (with a basic rate of 33.3%) is only 3% of GDP just behind the United States (2.4%) but ahead of Great Britain (3.7%) (Source: World Competitiveness Report, 2002). A study produced by Healer-Baker in 2002 placed Paris in second position after London as a location for European activity. A total of more than 8 000 foreign companies have chosen France.
With 465 billion Euros invested abroad in 2000, France occupies third position behind the United States and Great Britain. 90% of these investments are made in industrial countries, principally in the European Union. Two thirds of these investments result in acquisitions of companies outside of the Euro Zone. The remaining third are portfolio investments.
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