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US and France Business Culture
US and France Business Culture
The report analyzes current market trends between the United States and France and
compares business and economic models in terms of convergence and divergence. This report
usually compares and contrasts the trends in the United States and France in terms of cultural and
France is one of the most modern and highly developed countries in the world. It has one
of the largest economies and is the leader of European countries. France is a country that
continues to be proud of its rich history and independence. At the same time, French leaders are
increasingly calling for a connection between the future of France and the continued
development of the European Union. One aspect of French culture that has a significant impact
on French business is the country's emphasis on regulations. The French do not want to take
risks, so they cannot tolerate uncertainty and ambiguity, because uncertainty and ambiguity are
very important to anyone who wants to do business there (Dianetti, 2015). Gender does not play
organizations and foreign women, are as respected as men. However, it should be noted that
women are more likely to accept leadership positions in large cities than in states where certain
The French economy is scattered in all sectors. The government has partially or fully
privatized many large companies, including Air France, France Telecom, Renault, and Thales.
However, the government maintains a strong influence in certain areas, especially in the energy,
public transportation, and defense industries. French leaders continue to commit to capitalism
and maintain social equality through laws that reduce economic inequality, taxation policies, and
social spending (Blackshaw et al., 2012). France’s real GDP increased by 1.9% in 2017 from
1.2% the previous year. The unemployment rate (including overseas territories) rose from 7.8%
in 2008 to 10.2% in 2015 and fell to 9.0% in 2017. The youth unemployment rate in French
metropolises dropped from 24.6% in the fourth quarter of 2014 to 20.6% in the fourth quarter.
2017. France’s public finances have historically suffered from high spending and slowing
growth. In 2017, the budget deficit widened to 2.7% of GDP, in line with the EU’s 3% deficit
target. At the same time, France’s public debt increased from 89.5% of GDP in 2012 to 97% in
Americans with open-minded attitudes, policies, and regulations can easily enter
immigrant populations from many countries in the world. Cultivate different cultures, live
together in a society based on common values, goals, and customs (American culture), maintain
the original culture without respecting American culture, and apply it to daily life. The current
trend in the United States is more open to the study and import of new cultures. For example, in
many societies created by large-scale immigrants, new cultures are appropriate. However, the
new terminology of public policy failed to implement immigration laws designed to protect
American culture and heritage (Cook, 2012). Therefore, due to the various differences between
its culture and subcultures, the United States is defined as a country with cultural differences.
The United States has the most technologically powerful economy in the world, with a
per capita GDP of $59,500. American companies are at the forefront of technological
equipment. However, after the end of the Second World War, their dominance weakened.
According to the comparison of GDP measured by purchasing power parity conversion rate, the
U.S. economy is the largest economy in more than a century (Blackshaw et al., 2012). It fell to
second place in 2014, which has more than tripled the growth of the U.S. Each of the last 40
years. In the United States, individuals and businesses make most of the decisions, while the
federal and state governments primarily purchase the goods and services they need from the
private market. American companies are more flexible than French companies in expanding core
manufacturing capabilities, reducing surplus workers, and developing new products. At the same
time, the barriers for companies to enter the domestic market are higher than for foreign
companies to enter the US market (Ezell & Marxgut, 2015). The long-term challenges in the
United States include stagnant wages for low-income families, insufficient investment in
declining infrastructure, the rapid increase in health and retirement costs for an aging population,
energy shortages, and large recurring balances. Budget deficits are also included.
America is a culture based on the mission. In a task-based culture, affairs take precedence
over relationships. This means that business is based on cognitive trust, including trust in
abilities, abilities, and experience. The belief that people build business relationships is that they
have the skills and knowledge needed to do a good job. On the other hand, France coordinates
economic policies more closely in sensitive areas such as wages, pensions, and taxes to become
the leader of the eurozone (Zheng, 2010). In terms of promoting globalization, France’s goal is to
promote integration to reduce economic imbalances that cause sovereign debt crises. However,
this may also have serious political implications in distinguishing the Eurozone from other EUs.
Changes in business costs affected by culture can ultimately make a huge difference in
competitive advantage. A country more feminine than France aroused sympathy. Therefore, the
possibility of conflicts between employees is less, and the organization can save conflict
resolution solutions (Tian & Chen, 2010). In contrast, the American culture that emphasizes
masculinity and individuality is more likely to be a personal conflict, and there is less
coordination among employees. Therefore, the organization may need to spend more money on
relationships. Hofstede’s concept of power distance illustrates the difference between French and
American hierarchy. Compared with France, the United States ranks lower in terms of power
distance continuity. This low power distance is also known as an egalitarian culture, in which the
authorities and lower-level employees form teams (Leung et al., 2005). American companies
usually have a flat organizational structure that can encourage and accept communication at all
levels. In contrast, French culture has a hierarchical structure, relatively long distances of power,
status is very important, and power is separated from lower-level employees. French business is
hierarchy chain. Different interpretations of hierarchy in France and the United States can cause
many different problems in the workplace. In the United States, communications do not have to
follow a strict set of commands, so employees are allowed to call or email colleagues at multiple
levels of the chain. This is unacceptable in France, where communication must move from one
business. High range intensity is associated with bribery and corruption. The concentration of
power induces people to use their power to make money illegally (Bhaskaran & Sukumaran,
2007). As a result, the American cultural distance is relatively short, and companies doing
business in France face a higher risk of corruption than American companies. On the other hand,
the cost of corporate corruption is usually high, which is why working in France is a very serious
problem.
In terms of culture, avoiding uncertainty can be seen as a factor that creates a huge
difference between French and American culture. French culture avoids risks, while American
culture avoids risks (Inman, 2014). The higher the degree of uncertainty eliminated; the more
cautious people will be when choosing products. Therefore, it affects the business and requires
more or less effort to attract customers with new products or new brands. In this regard, a culture
of ambiguity like France forces people to think carefully before making a purchase decision.
Therefore, in order to successfully develop business in France, business managers must pay more
for promotional activities to improve customers’ knowledge of the product (Deari et al., 2008).
On the other hand, risk-averse Americans can easily consider adopting new products from new
brands. Therefore, due to the reduction of advertising activities in such markets, you can reduce
operating costs.
In addition to the many differences between France and the United States, the two
countries have some common features in business practices and business practices. Although the
United States emphasizes freedom of thought, speech, and business, Francis may choose to retain
the original style of the past. However, two of these countries are updating and developing every
day. Today's world economy is changing with each passing day. By working hard to explore new
cultures from the perspective of politicians, France can have more opportunities to cooperate
with more countries. In order to attract more business opportunities, they need to lower the tariff
and taxation boundaries between foreign imports and exports. At the same time, the United
States must strengthen its immigration policy to integrate it into society and prevent the
Blackshaw, T., Crawford, G., & Wilson, R. (2012). Financial and Management Accounting. In
Managerial Implications for Central Europe. Central European Business Review, 1(2), 46–
51. https://doi.org/10.18267/j.cebr.17
Deari, H., Kimmel, V., & Lopez, P. (2008). Effects of cultural differences in international
business and price negotiations. Växjö University - International Marketing Strategy, 3(14),
1–81. http://www.diva-portal.org/smash/get/diva2:206119/fulltext01
Dianetti, A. (2015). France and the United States : How Intercultural Competence Can Make or
Break a Business in a Global World France and the United States : How Intercultural
Embassy of France in the United States. (2018). France & the United States 2018 Economic
Report.
Ezell, S., & Marxgut, P. (2015). Comparing American and European innovation cultures. Itif,
157–199. http://www2.itif.org/2015-comparing-american-european-innovation-cultures.pdf
Leung, K., Bhagat, R. S., Buchan, N. R., Erez, M., & Gibson, C. B. (2005). Culture and
international business: Recent advances and their implications for future research. Journal
https://doi.org/10.1057/palgrave.jibs.8400150
Tian, Y., & Chen, J. (2010). How to Start A New Business in France ─ Justify the Idea of
Zheng, J. (2010). Cross-cultural Study on French and Chinese Managers’ Use of Power Sources.
https://doi.org/10.5539/ijbm.v5n5p219