Essays on French Mining Industry Company as a Potential FDI Candidate Case Study

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The paper 'French Mining Industry Company as a Potential FDI Candidate" is a perfect example of a finance and accounting case study.   The country that has been selected is France. This is one of the largest nations in Europe. The country stretches from the North Sea all the way to the Mediterranean. The country has a diverse landscape, having mountains in the East and the South. The political landscape in the country is stable. France joined the European Union in 1952 and has since then been a key participant in the growth of the EU (EUbusiness, 2006). The economic landscape in France France has a sophisticated industrial economy and a farm sector that is efficient.

The main activities that are conducted by the country include aerospace, automobile manufacture, chemicals and pharmaceuticals, electronics, fashion ware and information technology. The global competitiveness index of the year 2013-2014 ranks France as number 23. While this was a drop from position 21 the previous year, it still indicates a great economic position of the country. There are several competitive advantages that France holds. These include the outstanding transport links, communication and energy infrastructure (World Economic Forum, 2013).

France also has a healthy workforce. In addition, the quality and quantity of education in the country is great. A combination of these elements has provided an environment that is ready to adopt new technology and this implies that businesses ready to tap into technology can readily flourish in the country. In fact, France was in 2013 ranked number 17 among the countries that are ready for technology (World Economic Forum, 2013). The business culture in France is highly advanced and professional.

This is the reason as to why the country is well placed among the innovative countries in the world, especially in sectors based on science. All these boost the growth potential of the country. However, the country has room for improvement in the labor market. The country needs to inject more flexibility in the labor market since it is performing poorly, ranking position 116 in the world (World Economic Forum, 2013). This is because of the strict rules on hiring, firing and employee relations in the country which is full of conflicts.

The country also has stiff tax regulations and this makes it difficult to make decisions on working in France. However, improvement in these areas through tentative efforts that are being made provides hope for further growth of the sectors and growth of the country’ s economy (See, 2004). Identity of the mining industry in France The mining industry in France had suffered a dip. However, the country has recently embarked on mining to increase its national wealth. MarketWatch (2014) reported that France has forged three great obsessions that include the earth, gold and the state into one composite as the government strives to resurrect mining in the country.

This was equated to a classic icon of the 19th century. France moved to acquire a grip over mineral resources that were strategically important both at home and abroad. The government of France recently moved to invest nearly $548 million in a newly established mining company that is state-owned. This demonstrates the growth potential of the mining sector. Nearly 200 years ago, the country had owned mining companies in iron ore and coal mines.

The government was, therefore, making a noble move by investing in the state-owned Compagnie National des Mines de France (CMF). Creation of this national mining company provides the government with the opportunity to control the prices, quantities and sovereignty of mining in the country.

References

Deloitte IAS PLUS. (2009). Accounting Standards Updates by Jurisdictions. Retrieved April 28,

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http://www.iasplus.com/en/jurisdictions/europe/france.

EUbusiness, (2006). France Country Profile. Retrieved on April 28, 2014 from:

http://www.eubusiness.com/europe/france/france-country-profile.

Imerys, (2014). Company Profile. Retrieved on April 28, 2014 from:

http://www.imerys.com/scopi/group/imeryscom/imeryscom.nsf/pagesref/SCOI-8S4DUX?Opendocument&lang=en.

Imerys, (2012). Imerys Presents Today its Strategic Development Orientations at Investor Day

and Confirms 2011 Annual Target. Press Release, Paris, France.

Invest in France, (2014). Why Choose France? Retrieved on April 28, 2014 from:

http://www.invest-in-france.org/us.

Market Watch, (2014). France Goes Back to Mining as Source of National Wealth. Retrieved on

April 28, 2014 from:

http://www.marketwatch.com/story/france-goes-back-to-mining-as-source-of-national-wealth-2014-02-24.

Pologeorgis, N. (2013). The Impact of Combining the US GAAP and IFRS. Retrieved on April 28, 2014 from:

http://www.investopedia.com/articles/economics/12/impact-gaap-ifrs-convergence.asp.

See, H. (2004) Economic and Social Conditions in France During the 18th Century. France: Batoche Books Kitchener.

Wright, C. and Hobbs, S. (2010). “Impact and Implications of IFRS Conversion or

Convergence.” Bank Accounting & Finance, pp. 21-28.

World Economic Forum, (2013). The Globval Competitiveness Report 2013-14. Available at

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