Thursday, March 23, 2006

Why Would Business Set Up Shop in France?

http://today.reuters.com/news/newsarticle.aspx?type=worldNews&storyid=2006-03-23T180437Z_01_L23178518_RTRUKOC_0_US-FRANCE.xml&rpc=22

Seriously, who the hell is going to hire these people?

If I want something done in Europe I'll go to the former Soviet Bloc where they're not spoiled brat children.

3 comments:

  1. Anonymous2:26 PM

    Because many decision makers in business don't understand fundamental economics.

    The French government gives boatloads of incentives to companies to locate offices in France (with plenty of strings attached). I think the current company match for the French social security is 50%! (vs. 7% in the US) But, if you start a new company you don't have to pay that for several years. Also, since they've got their national health care companies don't have to (directly) pay health insurance premiums.

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  2. the match in the US is 50%, too. The employee pays 7% or so, and the employer pays 7% or so.


    But France's incentive system is totally wack.

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  3. Anonymous6:45 PM

    Derek,

    Decision makers in business. And you're absolutely right, they will be "outcompeted" in the medium/long term, but there always seem to be new takers. Someone is hiring the french.

    Doinkicarus,

    No, the company social security match is 7% of my income in the US. In france the company match is 50% of my income. (ie. it's much more expensive to hire french workers).

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