France Country Analysis

Economic growth rates in France have been steady for decades due to conservative planning of the economy which in comparison to other western European countries is more centralized by the government in France. France is the second largest economy and second trading nation in Europe. France, as with many modern industrialized nations, has a large and diverse industrial base. The Gross Domestic Product (GDP) from 1978 t0 2010 averaged 0.49 percent reaching to high of .60 percent in June 1978 and to the low of -1.60 in December 2008 when the world economic depression started to be felt.

Factor Endowment hold that countries are likely to be abundant in different type of resources. France is endowed with highly skilled labor force that steer the economic activities of the country (Adams, 1989). Furthermore its agricultural production is one of the best in the world with a large industrial base spread across the country. When calculating comparative advantage, it is important to remember that it is the ratios of factors that matter; a country could be heavily endowed with both labor and capital, but it proportionally may have more of one than another country. According to Aldrich (1990) France plays critical and integral part in International politics that shape the world. To support this France is a member of such international organization as NATO Which at the moment is involved in the airstrike in Libya against it authoritarian rule of President Gadaffi, United Nation. Conference On disarmament, International Atomic Energy Agency (IAEA), Organization for the Prohibition of Chemical Weapons2 (OPCW), Comprehensive Test Ban Treaty, Organization Preparatory Commission ,The World Bank, The International Monetary Fund and the European Union.

This entry was posted in Analysis Essay and tagged , , , . Bookmark the permalink.