The population of France is estimated at 58 million as of 1996 with a high take aim (11 pct) of unemployment. Consumer spending has non returned to the levels it was at prior to the recession, but the cut economy is considered to be in a recovery mode. The brass of Jacques Chirac has committed to making inroads in reducing the 3.3 million inert workers in France through increased spending on production line creation measures, including retraining and employer subsidies, to be funded in part by raising the value-added tax (VAT) to 20.4 pct. An increase in this tax does not help Coca-Cola market Minute Maid, but the reduction in unemployed workers increases the number of consumers who atomic number 18 able to purchase the product.
American exports to France grew by nine percent annually between 1987 and 1993, plot of ground American imports increased by approximately six percent annually during the same time. American merchandise exports increased some in 1994 to $13.6 billion, imports of cut merchandise increased to $16.8 billion, resulting in a trade deficit of more than $3 billion. A light-headed dollar works to the benefit of American goods since it results in prices which are low relative to
The french highway system is also excellent and has become an increasingly important part of Europe's overall transportation net; France presently invests more funds in its highway and road network than any other European country. In 1995, the regime inaugurated the longish spanned bridge in the world, Le Pont de Normandie, linking Le Havre with Honfleur over the Seine.
However, France has a strong trading relationship with the United States, and this relationship includes the super successful area of foods and foodstuffs. In fact, American items are considered to be of high quality, which puts the product in a good position.
France has the transportation infrastructure to support the scattering of goods such as this, and the distribution channels to effectively market the product. In addition, while a large percentage of French workers are currently unemployed, the government is taking steps to improve this situation, making the climate plain more attractive for a project such as this.
"French Trade Surplus Rises." Wall Street Journal, kinfolk 30, 1996, A7.
French imports of American food & agricultural products during 1994 were valued at $881 million, a 9.2 percent decrease compared to 1993. In a skid which is favorable toward the Minute Maid project, French agricultural imports are moving toward consumer-ready foodstuffs and away from bulk commodities. In 1994, fresh, frozen and/or dried fruits were the leading American agricultural export to the French market in terms of value, accounting for 14 percent of total agricultural exports to France. The French market for food products is mature, school and served by suppliers from around the world. American products are perceived as being of high quality, and Coca-Cola already has a strong social movement in the nation.
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