A business venture opportunity

Executive Summary

When one hears the word invest one automatically thinks of the outcome - high profit. Most investors look for an already booming economy or industries that have a history of withstanding any fluctuations in the market. The purpose of this proposal is to demonstrate and illuminate light on a country, in this case France. France is like a diamond in the rough; it has had major companies thrive for centuries, but has always stayed far away from the public attention. It has a large number of industries especially in the retail and tourist sector that have outdone many companies in the United States and Japan.

The objective is to invest wisely and carefully, France gives one that option. In the following report, we will provide substantial data and information to prove the point that France should be on the short list of possible countries to invest in. The report emphasizes on French fashion one of their safest industries to invest in. France is recognized most often for this industry. There is general information about the different factors that effect ones decision about investing especially in a foreign country. An investor needs to have common knowledge of the trade market, economic standing, business etiquette, legal aspect, and challenges that may arise by investing in France.

As provided below are charts and data tables to illustrate the comparison between investing in “safe” markets such as the United States, China, Mexico, that are well known through out the world to that of France which is more in solitude. One must not forget when choosing investments that all markets have a risk, but the investors who take educated risks are those who succeed; the bigger the risk, the bigger the praise. Do not second-guess yourself, act rationally and follow the information, this will never lead one astray. Invest in France, it is decision you will not regret and you will be able to enjoy the fruits of your investment in the near future. That in itself is what everyone hopes to achieve, strive for a goal, obtain it, and enjoy the rewards later.

Introduction

The first thoughts when one hears of France, is usually of its most famous attributes such as the Eiffel tower, the romance it engenders and the laid-back atmosphere, which it has in common with most other European countries. One thing most do not think of is its business aspects. In fact, France is a gold mine for a global market in business. However, this proposal will demonstrate not only the benefits of investing in France, but also some of the potential financial and governmental set backs. This proposal includes all aspects that are important in the planning of investing, by including blooming business ideas and markets, legal regulations, specifically in the fields of environmental, monetary, and trading. There will also be included information pertaining to financial benefits, compensations, and a cultural analysis.

France should not be undermined when it comes to business ventures, since it has held and continues to hold a vast market for food and champagne coinsures, fashion and timepiece moguls, automotive, and pharmaceutical industries for decades if not centuries. Additionally, one may not forget France's most important form of revenue, tourisms. Every year an estimated 80 million people travel to France for business or leisure. (http://www.frenchness.com/Travel_in_France.html) All these factors illustrate the opportunity for investing in a thriving country. As with most economies, there are fluctuations and sometimes there is a slow down in the market. However, it always reverses at some point. It is important to state that France is part of the European Union, and with this comes two vital points. First, as of today's market the Euro has more value than the American dollar; this means that an American needs to invest more money in France to obtain the same item in the United States. The second item is that in order to export and import in France, the company has to follow all European Union protocol and regulations, if they are inconsistent with your business, a major issue will arise.

However, with that said, the French are very intellectual individuals that live in a much-laid back stylish environment. France is located at the center of Europe, which allows it to transport and stay business save with its neighboring countries. France is the 5th largest economic power in the world with an estimated GDP at 1.871 trillion per year, and a GNI of 38,500 (in U.S. dollars). (http://www.imf.org/external/pubs/ ft/weo/2009/01/weodata/index.aspx) These statistics are made possible do to the fact that twenty thousand companies have made France their company's headquarters to conduct business affairs. As with every country, France has a breakdown of its industrial sectors, these include the following: automotive, human services, shared centers, environmental, aerospace, logistics, agribusiness, health, and information technologies. (http://www.invest-in-france.org/north-america/en/) Having these different sectors, allow the country and future investors an easier approach to obtain data on where the country is prevailing. Results have indicated for some time now that the retail sector, which includes: perfumes, cosmetics, wines, champagne, and gourmet food; have dominated the French market and have yield the largest amounts of profits and benefits to the country and its stakeholders.

France's fashion industry relies heavily on large amounts of sales in the retail sector. This market is large in itself; it covers the ready to wear look and the haute couture appearance. The basic framework her is that different designers either get trends, current, past, or create a new one from the major designers of the fashion world. They then produce the same clothing but at a much cheaper price, due to the type of fabric used, the quality of work, and the lack of a brand name. This allows for a mass market to purchase their products. France currently has a vast number of fashion houses located in Paris, which is not only the capital of France but the capital of the fashion world as well. (http://www.firmafrance.com/french-business-news/business-news.aspx?idArt=1766&Home=1)One knows that a person is wearing French fashion because of the style and elegance that comes from the outfit. Their clothing is identified typically by its classiness and rich ambience. However, for the past three decades, France has dropped to second place in the fashion industry, now following Italian Fashion, where Milan has become the fashion capital of the world. (http://en.wikipedia.org/wiki/Fashion_design) It can be seen that France is on a comeback and in the next several years will resume its place in fashion.

French fashion is here to stay and will continue to make France proud of the hard work and years of knowledge, which it has on fashion. As previously stated, France is making a comeback, which is the perfect time to invest and get on that train, which is moving straight up on the market.

Political Environment

When considering investment, although you may not consider the political environment, it has great importance and government policies can severely affect the growth of the company within that specific country. The current political system of France is known as the Fifth Republic, and it was implemented with its constitution on October 4, 1958. In this republic, the president functions as the head of state for five years under universal suffrage after he/she is elected. The President controls foreign policy, defense, and appoints a prime minister with the approval of parliament. France's current Head of State is Nicolas Sarkozy; he was elected in to office in 2007. The current Prime Minister of France is François Fillon; he is the head of government and is in charge of domestic policy. Parliament constitutes the legislative section of the government, they create, and vote on laws, the parliament is made up of the Senate and the National Assembly.(http://us.franceguide.com/France-s-Political-Structure.html?NodeID=1&EditoID=11879)

France is a member of the European Union, it has allowed those who want to invest and trade in the 27 European countries that are part of EU to have a frontier-free travel and trade and a single European currency, the Euro. This makes it easier for anyone who is interested or planning on investing in any of the 27 countries in the EU. This makes it easier for you as an investor in the fashion industry to be able to trade and have very small barriers or maybe even no barriers among the 27 European countries that are part of the European Union. This allows you to have the possibility for the growth and expansion into other countries. (our book)

There are ten well-known political parties in France, eight of which are represented in Parliament. The Union for a Popular Movement, is the largest one in France at this moment, President Sarkozy is a member of this party. The Union for a Popular Movement is known as a liberal conservative party. The next largest party in the parliament is the Socialist Party. The other six in parliament are as follows: Union for French Democracy, French Communist Party, Movement for France, Republican and Citizen's Movement, The Greens, and the Radical Left Party. The other two who are not represented in Parliament are Front National and LO, and the LCR. (http://www.diplomatie.gouv.fr/en/france_159/label-france_2554/label-france-issues_2555/label-france-no.-66_5559/feature.-france-politics-in-action_5589/background-and-election-rules_5590/survey-of-the-french-political-parties_8981.html) Knowing what parties represent France allows you to understand the majority views in France.

Looking at AMB Country Risk Report created on August 31, 2009, we see what risk the country has when dealing with international business based on economic, political, and financial system risk. According to this report, France is a CRT-1 country, which means it has low levels of risk across all three of the categories. The rating explains that the reason France has such a low political risk, is because the government has taken steps and movements to reduce and eliminate its intervention in the economy. (http://www3.ambest.com/ratings/cr/reports/France.pdf) This allows you as an investor to know that you will not have the government controlling or effecting your business transactions.

Legal Environment

It is also very important to know the legal system of the country that you are investing in, because having any business always involves legal matters and it is important to understand all aspects of the country's legal environment. France's legal system is based on civil law that was set by Napoleon and this Napoleonic code governs all of French law. The code is constantly updated with the times, to ensure that it remains current. There are two judicial systems an administrative and judiciary. It also does not have a jury system at all, since it was abolished in 1941. Instead, France implements a mixed tribunal, which is made up of six lay judges and three professional, and they have nine ordinary citizens who make up a popular jury.(http://www.justlanded.de/english/France/Articles/Culture/Legal-System)

According to Paris Europlace report, the legal environment is considered low risk because it has a very transparent and reliable tax and legal environment system. A great example of this transparency is that in August 2003, France implemented the “Financial Markets Security Act”, which gives the investors more information and more responsibility for directors and managers when creating financial statements. (http://www.paris-europlace.net/files/wp_legalenvironment.pdf) France has opened up its laws and regulations in order to create a more free market economy.

France continues to attempt to improve its Legal system and environment, and is constantly changing the civil law in such a way to make international business more attractive in France. Recently, in July of 2003, they implemented a task force that worked on finding a reform bill that would unify French law on security issues. They finally implemented the reform, which gives clarity on security issues, easier creation of security interests on personal property, greater enforcement on security interests, and much more in March 2006. (http://www.paris-europlace.net/files/wp_legalenvironment.pdf, p. 16) They also have created new forms of agreement in order to encourage investment and financial innovation. This has been implemented through a new law for easier partnerships. According to France's Country profile done by Doing Business, France has been ranked 25 overall for trading across borders when looking at good practice and the economy. When talking about France's ranking in Enforcing Contracts, in 2009 it was ranked number eight. (http://www.doingbusiness.org/Documents/CountryProfiles/FRA.pdf)

In the Doing Business country report for 2010, France only had two reforms, but they were the following, “France improved the insolvency process by encouraging pre-insolvency workouts and no longer requiring estimation of the value of assets by a public auctioneer. A fuller electronic connection between notaries and the land registry reduced the time to transfer property in France and made it easier to obtain encumbrance and ownership documents from the registry.” (http://www.doingbusiness.org/Documents/CountryProfiles/FRA.pdf) These reforms give investors a benefit to do business in France, no matter what the area of concentration that they are investing in.

Economic Environment

The French economy is currently at a good balance of growth and decline. Inflation is at a steady rate with out dramatic increase, many jobs have been created, and investing was at an all time high. GDP was up by 2%, causing the fiscal deficit as well as the government debt to decrease. However, for the first time ever France's growth is below the Euro average. France has benefited along with Europe as a whole due to the European movement of not contributing to fuel. France has a good foundation with the Euro they are protected from financial turmoil, unlike in the past where France would suffer an unstable currency. The reason France has such a fluctuation in its economy is caused by two main factors: France's incredibly high domestic demand and their above average house consumption. France's economy suffered another down turn that was unforeseen, which was the decline and depreciation in the country's exporting performance. The reason for the lack of trade is due to sector specialization. Specialization takes a very long time to develop and evolve but the effects of an inconsistent system are felt by the economy immediately and dramatically. With the bad comes a lot of good in this economy, France is the second largest economy in the Euro system. France is a huge contributor when it comes to the European economy as a whole. The French economy and their citizens are focusing on consolidating their finances and debts.

When it comes to the economic effect on the fashion industry, it is very interesting how one correlates the other. The general concept here is that as the economy goes down so do the type of outfits people invest on, and vice versa when the economy is escalating. Studies indicate that in America for example doing the Great Depression (1930s) and the stagflation of the 1970s, many individuals would wear outfits more than once and be more decisive about how much money to spend on the clothes. As more people come to realize that a shirt of Wal-Mart services the same purpose as a shirt by Lacoste. This is very important to look at and understand if one plans to invest in French fashion today. However, this analogy can be demonstrated in every business venture one attempts to embark one, during a global economic crisis. On the up side, if one invests in a variety of fashion that of upscale and lower items, then ones portfolio will balance out both during ups and downs in the fashion market. One thing is for certain people have to eventually purchase clothes, so money will be made in the run long.

In France, one of the most important companies that determine and effect fashion is LMVH (Louis Vuitton. Moet Hennessy) has report that leather goods and fashion accessories have reached an 11% increase in revenue since the first quarter of 2009. Both Louis Vuitton and its competitors such as Michael Kors have seen increases in the amount of revenue made not only in the purse department but across the board in all fashion goods. However, perfumes and cosmetics have seen a decrease in purchases by 8% since the first quarter of 2009, while people are still purchasing these items; they have slowed down the amount of consumption. In times of economic uncertainties one needs to choose what they can and can't live without. Luckily, the census indicate that fashion is still highly ranked in the wants and needs of many people around the world.

The French economy and their citizens are focusing on consolidating their finances and debts. While most countries are focusing on public spending and welfare, France has decided that they would like to allocate their resources for redistribution of income and stabilize the economic cycle. Since France has one of the highest GDPs that is followed by one of the highest general spending. France is narrowing in on a balance of spending and deficit. They are limiting the funds that are available. France has a great asset in their favor, which is its civil service. This is essential when it comes to presenting projects and movements to the general public. France's economy is able to withstand changes in the economy due to its flexibility in the economic cycle. With France in position to handle and adapt to so much progress, growth and change the government is prepared to start investing.

Monetary Environment

France's balanced growth and economic growth was marked in 2006 by the gaudy numbers that were produced world wide. During this period, the French economy saw a return on growths pertaining to employment and a decrease on government deficits. During this period Europe encountered 2.9% in growth for the second consecutive year, that hasn't been seen since 1999-2000. This past year over 2 million jobs were created, which adds to the new total of 13 million since the introduction of the single currency. Since the increase of jobs that led to the upward movement of the overall GDP, which is currently rising at a similar rated to the economy's potential. Following these economic changes, France's recovery was a lot faster and productive household consumptions fueled the business cycle. France's rapid growth also came with concerns with the increase in GDP at 6% and gradually increasing to 10% consumer's feared inflation. Changes had to be made in the money and credit demand that were being offered. These concerns were monitored for the effects on monetary stability and financial systems. France's main ways of credit were re-financing homes; once this growth kicked in 2006 it was replaced by lending to companies and company buy-outs. Interest rates have increased on seven different occasions since the growth in GDP and the rise of employment. The constant inflation is causing a treaty to be created to keep price stability for a long period of time. Price stability is the main goal of all central banks world wide.

France has avoided the failure that has occurred over the past decade when other countries try to stimulate growth by expanding monetary policy, which has failed because inflation rates will rise to all time highs and not enough employment will be available. Since this growth France is currently ranked 28 out of 43 European countries it has an overall higher than average score when it comes to economic freedom. France being a member of the European Union follows the rules of monetary policy which tries to keep inflation rates relatively low. “France is a member of the euro zone. Between 2005 and 2007, France's weighted average annual rate of inflation was 1.7 percent. As a participant in the EU's Common Agricultural Policy, the government subsidizes agricultural production, distorting the prices of agricultural products. Prices of pharmaceuticals, books, electricity, gas, and rail transportation are regulated. Ten points were deducted from France's monetary policy score to adjust for measures that distort domestic prices.&rldquo;

Trade Environment

It is important to realize that French international trade economies rely heavily on the fashion and clothing industry. There are many other aspects surrounding these industries that play a part in the overall economic success of France. France's history of tapping into the economies of its neighbor's has contributed to the stimulation of later export successes, such as the fashion industry. Its strategic location in the heartland of Western Europe has allowed France many opportunities in the international trade market. (https://www.uktradeinvest.gov.uk/ukti/appmanager/ukti/countries?_nfls=false&_nfpb=true&_pageLabel=CountryType1&navigationPageId=/france)Along with its history, international affairs, and the longevity of demand for French fashion products, France has been able to sustain a generous cash flow from this industry.

France is the UK's third largest export market (the second in Europe) and the UK's third largest supplier. Exports to France amount to some £20 billion per year and account for nearly 10% of UK visible exports worldwide (uktradeinvest.gov). This is the relativity of international trade between two countries alone. France surprisingly has surpluses in the areas of machinery, pharmaceuticals, and energy sectors, so production is relatively efficient in many parts of France. “The economy of France has been carefully planned to provide support to international trade with a number of important products and commodities. Globally, the country holds an important position as the third largest trader in the European Union after Germany and the United Kingdom.”, as according to the research done by EconomyWatch.(economywatch.com). This sense of globalization in the trade market has been a necessary opportunity, the country has been fortunate enough to encounter in order to promote its markets and create a name. Along with its generous international endeavors, France has been able to establish an incredible reputation in the fashion export business, many deeming it the “fashion capital of the world”.

The fashion industry in France has played a major part in its economic progression as a whole. The reason for this is simply due to high demand and the longevity of its credibility as a fashion power house. Paris, France is known to many as the fashion capital of the world, hosting many world renowned designers such as Gucci, Chanel, Prada and many more. However, France is the 6th largest fashion center of the world and holds the title as the largest fabric industry (www.wikapedia.com). The interesting part about this is that not only does the fashion industry stimulate income domestically; its export market is huge and involves countries on a global scale. France is the most visited country in the world and hosts seventy-five million visitors a year. The success of the tourism industry attracted by fashion has helped the economy grow. People from all over the world bring money from various countries to spend in France (www.wikapedia.com). As some economy columnists from EconomyWatch would suggest, the French fashion industry has helped tremendously in the unsteady real estate market France has had. There is no central listing system which means that France's real estate agents compete to sell all the property in the country. (http://www.economywatch.com/world_economy/france/export-import.html). The fashion industry produces a great deal of money for the economy but unstructured real estate market can have many at odds with how to progress in the situation that is at hand.(internationalbusiness.wiki.com) This proves that the fashion industry is a main attributer to French international trade markets in general.

An interesting example to show the effect of the French fashion industry on other economies is that of India. According to economist writers from EconomyWatch, France, being particularly synonymous with creativity, luxury and fashion, has a significant presence in India in this sector and a vast number of French brands are today available in the Indian market. (http://www.economywatch.com/world_economy/france/export-import.html) The French influence there is so strong, it literally changes the way people want to live in society, which can only enhance the classic reputation for finery that France sustains to this day.

Throughout France's history, the notion of international affairs has been that of an open and adventurous one. Due to this stimulation of trade, France has been able to gain the credibility and access by major economies to progress its export sector. Furthermore, this socio-economic movement towards a lifestyle filled with classic French goods has helped give the fashion industry prosperity and longevity. What is interesting to note is how timeless the French fashion industry truly has become. Many aspects of global trade change dramatically with the trend; yet French fashion has maintained its reputable atmosphere entirely. Overall, because of France's desire to enter into the global trade market early on, its credibility with developed countries, and its timeless reputation for luxurious fabric and fashion, it is possible that it will remain the “fashion capital” for a long time to come.

Cultural Analysis

The French culture has been one of exquisite taste and prolific living. Whether it be in the arts, renaissance architecture, cuisine, or fashion; France has a special way of providing richness with its traits. These trademarks that have come to represent France throughout the years has played an influential role in the way that people live and experience the atmosphere of the country. They are a very diverse country when it comes to national backgrounds. People from Russia, Asia, Africa, Europe, and the Americas all call France their home. The French are known world-wide for their great fashion sense, laid back work ethic, and romance. France has always been a fashion Mecca of the world and a major player in deciding the “what not to wear” and “what to wear”.

French fashion revolves around culture not only that of France but around the world. As trends reveal and others come back to existence, culture plays a significant role in what people wear and how they present themselves in the general public. This is why France has been home to and will continue to be home to most of the famous designers of the world. While it is true that American and Italian fashion has escalated in sales in the last few years, there is nothing like the grace of wearing French made attire.

This chic look is not new to French fashion. It all started in the 16th century when the royal families wished to wear fabric of the best grade and flaunt their social status to the rest of the country. As the years passed and in twentieth century rolled in, French fashion companies such as Christian Dior and Coco Chanel continued to represent the best of the best. Nowadays, these brands still meant for the wealthy are an iconic symbol what it means to fashion the best, most expensive fabric that money can buy.

On another note, one needs to look at investing in France not just by its fashion but other important aspects that may arise when conducting business transactions. The French have a very distinct taste for food, beverages, and the manner in which they are consumed. Meals in France are usually like social events. Dinner is not put pulled out of a microwave tray but is rather consumed at a local restaurant or even cooked at home. More notably, however, is the amount of time dedicated to each meal. The French usually reserve hours for eating each meal and converse with others or read the paper as they do so. While, their eating is more like a leisure time for the French, people from other countries which have a much more fast-paced lifestyle should familiarize their selves with this habit, especially before business meetings, since it is critical to make the other person feel at ease and unrushed.

The French are also depend on their government for help and as an economic supporter much more than other countries. For instance, any French family with children is entitled to a monthly government stipend. Additionally, the French government allots much more money to small business in the form of subsidies, and supports the smaller companies in addition to the larger ones. Vacation time in France is a must and people tend to take no less than five weeks of vacation time per year. Overall, people look to the government to help them with social and economic issues, thus the government takes on a more hands on role in resolving problems.

Some interesting issues that are important to address about investing in France regardless of the industry one plans to invest in, is the proper French etiquette of conducting business transactions. It is well known that first impressions are everything; one inappropriate act can falter the deal. The following are general facts and rules that should be followed in order to ensure a successful business transaction occurs. The French are strict in regards to appointment arrivals; culturally, they begin appointments on point with the scheduled time. Furthermore appointments are scheduled no less than two weeks in advance, either by email or telephone. (http://www.kwintessential.co.uk/resources/global-etiquette/france-country-profile.html)

Another issue that should be addressed is the language barrier. It is beneficial for business if one learns the language of the country they are investing/conducting business in, or at least learn some of the important phrases in the business trade. In doing so, one will allow the associate to continue to have interest and trust; for they understand what it is being proposed and asked of the company. Finally, when it is time to have the actual meeting, make sure to not make oneself welcomed but to allow your associate to do so for you, make sure to carry yourself in a proper manner, this includes using direct eye contact and proper wording when one is making a point or argument. When an agreement has been done, make sure to draft a stated documented agreement, in case there are any future problems and liability is being placed on the wrong hands.

Outline of Challenges

When one thinks of French fashion, one automatically pictures tailored clothes, classy embroiders, and seamstress making the perfect outfit. This vivid image unfortunately has been washing away lately with the all the different challenges that have risen due to the global recession that has hit the world as of late 2007. At this point in time, it's not even a matter of whether the quality of fabric or work ethic has declined, but rather it is the issue that the middle-class and elite are scared of spending their money to purchase high-end items. These customers have the right to be conservative, in a market where one day stocks are up 200 points and then the following day crash 300 point below record quarterly lows, why would anyone go a live too lavish nowadays. The crisis is so problematic that it has come to the point where France as well as other countries of the world are creating stimulus packages to help their citizens. France reported that roughly 353 high-end fashion industries have had to close in the past 7 years, this number may look small, but one needs to know that there were only 468 industries in the country to start off with. With these closures, comes the issue of keeping or obtaining a job in France today. The number of employed highly skilled artisans has dropped by 80% country-wide. Furthermore, there is the always present challenge of staying ahead and beating the competition, there are 82 different design labels in France, all with the same agenda in mind - out sell the competition. These labels include world renowned brands such as Lacoste, Hermes, and Louis Vuitton; all of which can be found in Paris' most famous fashion street, Champs-Elysees.

As with most countries of the world, there are “gray areas”. Living conditions and social issues are vividly seen throughout the country. France does have poverty, racial discrimination, and social indifferences between the classes. The entire country is not blooming with the sophisticated life of the elite or that of the tourists that come and spend money at restaurants and the theater. Don't forget these individuals only see the best that France has to offer, no one wants to see the part of the city with high crimes and in ruins.

A major challenge in the fashion market, as with most markets one would invest in, is that there are fluctuations, some are less financially disastrous than others, but the risk is always present. For the past 5 years, the French haute couture has been declining as well as the fashion industry in general. The reason for this wide decline in French fashion was mainly due to the new trend lines of its competitors such as Tommy Hilfiger, Nautica, Ralph Lauren, and Nike. These American and Japanese companies are booming due to the fact that their products are less expensive and provide the same benefits as Christian Dior or Christian Louboutin. Also is the idea that they are new trends that these older designers are not catching on too. Although, it is true that the simplicity and good quality of products like Louis Vuitton and Prada are most likely here to stay, younger customers might not want to necessarily dress like older people; they want “what is in” and fashionable. Everyone in the retail business knows that one has to stay with the new crowd or potentially lose revenue. To add to this, there is also the statistics that show stores like Saks Fifth Avenue, Neiman Marcus, and Barneys New York are all feeling the crunch of the recession. In these difficult times most people can't afford French fashion, and to make matters worse, in a market were the wealth are scared to invest and live lavishly it is hard to start on top and beat competition like Wal-Mart and Macys. This does not take always from the fact that people will always want to get the best clothes that money can buy, and that eventually the recession will come to an end and customers will go out a buy a pair of Christian Louboutin stilettos for 800 dollars.

Assessment of Country

Overall, France is on the verge of regaining its' thrown as the king of the fashion industry. France has always been one-step ahead of the competition for centuries now. But with countries like Milan, London, and Dubai all racing to beat France and sometimes dropping the country from its first place to second, France needs to make sure that it keeps its competitive advantage over its rivals. It is said that France plans to outdo its competition by the end of 2009, beginning of 2010. France established the “Sales By Paris” which basically is an organization whose main objective is to attract tourist to the country in its off peak season, which is January (the slowest month for shopping). (http://www.firmafrance.com/french-business-news/business-news.aspx?idArt=1766&Home=1).Hopefully, this should increase all retail sales for the country and elevate it back to its number one spot in the fashion world. It has been estimated that this plan will attract roughly 29 million tourists during this time period, which will yield high profit margins on return and investment. (http://www.firmafrance.com/french-business-news/business-news.aspx?idArt=1766&Home=1) According to, the LMVH (Louis Vuitton. Moet Hennessy), which is the country's biggest luxury company, they have reported sales of 6.181 billion U.S dollars in sales, it is down from last year but it is a major increase from the previous quarters, this is an indication that the market is turning around, and France is going to be at the forefront of that market. Another interesting sign that the French fashion is making strives to increase revenues is with the revolutionary eco-friendly denim line of jeans. It is well known that denim is a billion dollar industry; almost everyone around the global owns a pair of jeans. France has decided to experiment with recycled products such as plastic and paper to make a pair of jean. The idea of using used products that will take years to degrade to make a new pair of jeans is remarkable, not only is it great of the environment it may even become a new trend. Leading this innovative idea is Levi-Strauss, the company will be the first to release the line, a pair of jeans that are 37% made from recycled plastic. This is allowing France to obtain enormous amount of publicity and have the backing from the environmentalist of the world. These signs all indicate that France and fashion are going to expand into 2010 and the future.

References

• http://www3.ambest.com/ratings/cr/reports/France.pdf
• http://us.franceguide.com/France-s-Political-Structure.html?NodeID=1&EditoID=11879
• http://www.diplomatie.gouv.fr/en/france_159/label-france_2554/label-france-issues_2555/label-france-no.-66_5559/feature.-france-politics-in-action_5589/background-and-election-rules_5590/survey-of-the-french-political-parties_8981.html
• http://www.justlanded.de/english/France/Articles/Culture/Legal-System
• http://www.paris-europlace.net/files/wp_legalenvironment.pdf
• http://www.doingbusiness.org/Documents/CountryProfiles/FRA.pdf
• https://www.uktradeinvest.gov.uk/ukti/appmanager/ukti/countries?_nfls=false&_nfpb=true&_pageLabel=CountryType1&navigationPageId=/france
• http://www.economywatch.com/world_economy/france/export-import.html
• http://internationalbusiness.wikia.com/wiki/France:_Strengths_and_Weaknesses_of_the_Fashion_Industry
• http://www.travour.com/tours-to-france/culture-of-france/
• http://www.ringsurf.com/online/728-french_fashion.html
• http://www.firmafrance.com/french-business-news/business-news.aspx?idArt=1766&Home=1
• http://online.wsj.com/article/SB125590431567593049.html
• http://en.wikipedia.org/wiki/Fashion_design
• http://french-luxury.com/history_of_french_fashion.html
• http://www.nytimes.com/1998/01/27/style/review-fashion-french-couture-sets-pace-again.html
• http://www.kwintessential.co.uk/resources/global-etiquette/france-country-profile.html
• http://www.justfrance.org/france/paris/
• http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/index.aspx
• http://www.invest-in-france.org/north-america/en/Why-choose-France.html