Consultancy Report on Subsidiary Business in France

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Source: France minimum wage, https://ieconomics.com/france-minimum-wages[pic 7]

Based on the comparison about mining wage and unemployment between UK and France, figures in tables indicate France employment situation is relatively worse.[pic 8]

Source: Average wage in UK & France, https://data.oecd.org/earnwage/average-wages.htm

Unemployment rate in UK & France, https://data.oecd.org/unemp/unemployment-rate.htm[pic 9]

In summary, it has been shown by the analysis above that due to increasing minimum wage and high long-term unemployment rate, cost of employee proves to be relatively high compared to that of UK. Therefore it might not be a good choice to build business in France in terms of employment situation.

6. Educational background of the population

The basic education plan in France contains three main stages, primary education (école primaire), secondary education (secondaire) and higher education respectively covering 3-11, 11-18 and after 18 years old. The higher education system in France appears to be diversified and complex constructed.

According to OECD Data, France spent 7201 dollars per student, meanwhile the expenditure of education reached 5.5 percentage of GDP in 2013. Also presented by Human Development Report in 2016, the expected years of schooling in France is 16.3 years. As foreign children may allowed to accept local primary education, France saw 105 percent of primary school-age population and 111 percent of secondary school-age population

Turning to adult educational level, figures of France, UK and OECD Average may constructs that more French centralise in upper secondary and below upper secondary level of education as UK have hight proportion in tertiary education level. This should be taken it in account for different level of employee recruitment.[pic 10][pic 11]

Source: Below upper secondary, upper secondary, tertiary education levels rates, OECD

Now the France education system is facing urgent changes because the several problems, such as unequal distribution of education resources and fragmental constructions. A notable example of this is that educational elite is centralised in Paris. In order to address these problems of resource distribution, policies are conducted to reinforce universal educational function of universe, constantly remove preparatory courses and reform Grande école.

Since shed company may be in high demand of manual workers for manufacturing production and amount of office employe,

Conclusion

Based on the potential advantage and disadvantage indicated above, a cost benefit analysis would be conducted as follow. As mentioned in introduction, material cost of wood may see noticeable increase due to strict forestry policies such as ‘replantation after deforestation’ though there are plenty of forest resource in France. According to corruption level, extra political expense could be charged compared to business in UK. Though low informal sector rate may provide company a healthy market, it may not make obvious difference upon expansion. In terms of employment situation, higher minimum wage and lower employment rate compared to UK lead to an obvious increase of employe cost. Due to the levels of education and skill analysed in section six, recruitment will be tough problem in France.Considering other issues such as language and European legislation, the increase of cost proves to overweigh the gain in benefit.

Overall, Sheds-for-Dads’ decision to extend operation to France is not recommended by this consultancy report.

Reference

Rose-Ackerman, S., & Palifka, B. J. (2016). Corruption and government: Causes, consequences, and reform. Cambridge university press.

Legifrance, ‘Décret n° 2015-1688 du 17 décembre 2015 portant relèvement du salaire minimum de croissance’,

Terra Nova, ‘Réformer le droit du travail’, http://tnova.fr/rapports/reformer-le-droit-du-travail

Institute Montaigne, http://www.institutmontaigne.org/fr/publications/marche-du-travail-la-grande-fracture

Anne-Sylvaine Chassany and Michael Stothard, ’Christian Noyer warns of red tape threat to France’s recovery’, https://www.ft.com/content/eaab82d4-c822-11e4-8210-00144feab7de#axzz3w76K45Wz

Karel Fric, ‘Statutory minimum wages in the EU 2016’, https://www.eurofound.europa.eu/observatories/eurwork/articles/working-conditions-industrial-relations/statutory-minimum-wages-in-the-eu-2016

"Impots.gouv.fr – L'emploi d'un salarié à domicile". Retrieved 4 March 2015.

Gervès-Pinquié, C., Bellanger, M. M., & Ankri, J. (2014). Willingness to pay for informal care in France: the value of funding support interventions for caregivers. Health Economics Review, 4, 34. http://doi.org/10.1186/s13561-014-0034-2

Service-Public, https://www.service-public.fr/

CIA, the World Facebook, https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html