United States and France business and economic compare and contrast

The report analyzes current market trends between the United States and France and

compares business and economic models in terms of convergence and divergence. This report

usually compares and contrasts the trends in the United States and France in terms of cultural and

economic performance and market management on the road to globalization today.

France is one of the most modern and highly developed countries in the world. It has one

of the largest economies and is the leader of European countries. France is a country that

continues to be proud of its rich history and independence. At the same time, French leaders are

increasingly calling for a connection between the future of France and the continued

development of the European Union. One aspect of French culture that has a significant impact

on French business is the country's emphasis on regulations. The French do not want to take

risks, so they cannot tolerate uncertainty and ambiguity, because uncertainty and ambiguity are

very important to anyone who wants to do business there (Dianetti, 2015). Gender does not play

an important role in French business culture. Women entrepreneurs, including French

organizations and foreign women, are as respected as men. However, it should be noted that

women are more likely to accept leadership positions in large cities than in states where certain

gender inequalities still exist.

The French economy is scattered in all sectors. The government has partially or fully

privatized many large companies, including Air France, France Telecom, Renault, and Thales.

However, the government maintains a strong influence in certain areas, especially in the energy,

public transportation, and defense industries. French leaders continue to commit to capitalism

and maintain social equality through laws that reduce economic inequality, taxation policies, and
social spending (Blackshaw et al., 2012). France’s real GDP increased by 1.9% in 2017 from

1.2% the previous year. The unemployment rate (including overseas territories) rose from 7.8%

in 2008 to 10.2% in 2015 and fell to 9.0% in 2017. The youth unemployment rate in French

metropolises dropped from 24.6% in the fourth quarter of 2014 to 20.6% in the fourth quarter.

2017. France’s public finances have historically suffered from high spending and slowing

growth. In 2017, the budget deficit widened to 2.7% of GDP, in line with the EU’s 3% deficit

target. At the same time, France’s public debt increased from 89.5% of GDP in 2012 to 97% in

2017 (Embassy of France in the United States, 2018).

Americans with open-minded attitudes, policies, and regulations can easily enter

immigrant populations from many countries in the world. Cultivate different cultures, live

together in a society based on common values, goals, and customs (American culture), maintain

the original culture without respecting American culture, and apply it to daily life. The current

trend in the United States is more open to the study and import of new cultures. For example, in

many societies created by large-scale immigrants, new cultures are appropriate. However, the

new terminology of public policy failed to implement immigration laws designed to protect

American culture and heritage (Cook, 2012). Therefore, due to the various differences between

its culture and subcultures, the United States is defined as a country with cultural differences.

The United States has the most technologically powerful economy in the world, with a

per capita GDP of $59,500. American companies are at the forefront of technological

advancement, especially in computers, pharmaceuticals, medicine, aerospace, and military

equipment. However, after the end of the Second World War, their dominance weakened.

According to the comparison of GDP measured by purchasing power parity conversion rate, the
U.S. economy is the largest economy in more than a century (Blackshaw et al., 2012). It fell to

second place in 2014, which has more than tripled the growth of the U.S. Each of the last 40

years. In the United States, individuals and businesses make most of the decisions, while the

federal and state governments primarily purchase the goods and services they need from the

private market. American companies are more flexible than French companies in expanding core

manufacturing capabilities, reducing surplus workers, and developing new products. At the same

time, the barriers for companies to enter the domestic market are higher than for foreign

companies to enter the US market (Ezell & Marxgut, 2015). The long-term challenges in the

United States include stagnant wages for low-income families, insufficient investment in

declining infrastructure, the rapid increase in health and retirement costs for an aging population,

energy shortages, and large recurring balances. Budget deficits are also included.

America is a culture based on the mission. In a task-based culture, affairs take precedence

over relationships. This means that business is based on cognitive trust, including trust in

abilities, abilities, and experience. The belief that people build business relationships is that they

have the skills and knowledge needed to do a good job. On the other hand, France coordinates

economic policies more closely in sensitive areas such as wages, pensions, and taxes to become

the leader of the eurozone (Zheng, 2010). In terms of promoting globalization, France’s goal is to

promote integration to reduce economic imbalances that cause sovereign debt crises. However,

this may also have serious political implications in distinguishing the Eurozone from other EUs.

Changes in business costs affected by culture can ultimately make a huge difference in

competitive advantage. A country more feminine than France aroused sympathy. Therefore, the

possibility of conflicts between employees is less, and the organization can save conflict

resolution solutions (Tian & Chen, 2010). In contrast, the American culture that emphasizes
masculinity and individuality is more likely to be a personal conflict, and there is less

coordination among employees. Therefore, the organization may need to spend more money on

conflict resolution and better collaboration.

Conceptually, centralization also plays a role in the workplace through hierarchical

relationships. Hofstede’s concept of power distance illustrates the difference between French and

American hierarchy. Compared with France, the United States ranks lower in terms of power

distance continuity. This low power distance is also known as an egalitarian culture, in which the

authorities and lower-level employees form teams (Leung et al., 2005). American companies

usually have a flat organizational structure that can encourage and accept communication at all

levels. In contrast, French culture has a hierarchical structure, relatively long distances of power,

status is very important, and power is separated from lower-level employees. French business is

a multi-level organizational structure, in which communication needs to move up in the

hierarchy chain. Different interpretations of hierarchy in France and the United States can cause

many different problems in the workplace. In the United States, communications do not have to

follow a strict set of commands, so employees are allowed to call or email colleagues at multiple

levels of the chain. This is unacceptable in France, where communication must move from one

level of government to another until the appropriate goals are achieved.

In addition, corruption is another negative impact of French and American culture on

business. High range intensity is associated with bribery and corruption. The concentration of

power induces people to use their power to make money illegally (Bhaskaran & Sukumaran,

2007). As a result, the American cultural distance is relatively short, and companies doing

business in France face a higher risk of corruption than American companies. On the other hand,
the cost of corporate corruption is usually high, which is why working in France is a very serious

problem.

In terms of culture, avoiding uncertainty can be seen as a factor that creates a huge

difference between French and American culture. French culture avoids risks, while American

culture avoids risks (Inman, 2014). The higher the degree of uncertainty eliminated; the more

cautious people will be when choosing products. Therefore, it affects the business and requires

more or less effort to attract customers with new products or new brands. In this regard, a culture

of ambiguity like France forces people to think carefully before making a purchase decision.

Therefore, in order to successfully develop business in France, business managers must pay more

for promotional activities to improve customers’ knowledge of the product (Deari et al., 2008).

On the other hand, risk-averse Americans can easily consider adopting new products from new

brands. Therefore, due to the reduction of advertising activities in such markets, you can reduce

operating costs.

In addition to the many differences between France and the United States, the two

countries have some common features in business practices and business practices. Although the

United States emphasizes freedom of thought, speech, and business, Francis may choose to retain

the original style of the past. However, two of these countries are updating and developing every

day. Today's world economy is changing with each passing day. By working hard to explore new

cultures from the perspective of politicians, France can have more opportunities to cooperate

with more countries. In order to attract more business opportunities, they need to lower the tariff

and taxation boundaries between foreign imports and exports. At the same time, the United
States must strengthen its immigration policy to integrate it into society and prevent the

destruction of many cultures in the world.

Bhaskaran, S., & Sukumaran, N. (2007). National culture, business culture and management

practices: Consequential relationships? Cross Cultural Management: An International

Journal, 14(1), 54–67. https://doi.org/10.1108/13527600710718831

Blackshaw, T., Crawford, G., & Wilson, R. (2012). Financial and Management Accounting. In

The SAGE Dictionary of Leisure Studies. https://doi.org/10.4135/9781446213278.n89

Cook, G. M. (2012). The Influence of National Culture on American Business People -

Managerial Implications for Central Europe. Central European Business Review, 1(2), 46–

51. https://doi.org/10.18267/j.cebr.17

Deari, H., Kimmel, V., & Lopez, P. (2008). Effects of cultural differences in international

business and price negotiations. Växjö University - International Marketing Strategy, 3(14),

1–81. http://www.diva-portal.org/smash/get/diva2:206119/fulltext01

Dianetti, A. (2015). France and the United States : How Intercultural Competence Can Make or

Break a Business in a Global World France and the United States : How Intercultural

Competence Can Marketing / Management Major. Senior Honors Theses., 93.

Embassy of France in the United States. (2018). France & the United States 2018 Economic

Report.

Ezell, S., & Marxgut, P. (2015). Comparing American and European innovation cultures. Itif,

157–199. http://www2.itif.org/2015-comparing-american-european-innovation-cultures.pdf

Leung, K., Bhagat, R. S., Buchan, N. R., Erez, M., & Gibson, C. B. (2005). Culture and

international business: Recent advances and their implications for future research. Journal

of International Business Studies, 36(4), 357–378.

https://doi.org/10.1057/palgrave.jibs.8400150
Tian, Y., & Chen, J. (2010). How to Start A New Business in France ─ Justify the Idea of

Starting.pdf. 3(3), 94–99.

Zheng, J. (2010). Cross-cultural Study on French and Chinese Managers’ Use of Power Sources.

International Journal of Business and Management, 5(5), 219–225.

https://doi.org/10.5539/ijbm.v5n5p219