On a physical level through multinational french

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on a physical level through multinational French firms and foreign companies operating in France; and on a financial level, through the free movement of capital. France boasts a number of key advantages and capabilities that ensure it remains central to the global economy, not only for attracting foreign talent and investment, but also for the success of its products in markets throughout the world. INTERNATIONAL BUSINESS DEVELOPMENT STRATEGIES GREATER CROSS-BORDER TRADE AND INVESTMENT Greater international competition, at a time when new technology is increasingly driving micro-management of value chains, is leading to new strategies to outsource operations both pre- and post-production. Lower transport costs, progress in information and communications technology, and more mobile production factors have combined to make it easier to fragment production processes. 2016 SUMMARY NEW INTERNATIONAL BUSINESS DEVELOPMENT STRATEGIES ARE EMERGING TO TAKE FULL ADVANTAGE OF GLOBAL VALUE CHAINS. Today, company operations, from product design, component production and product assembly to marketing, have spread across the globe, creating international production chains. Companies can spread their productive activities across several countries to exploit various comparative advantages, thereby improving their competitiveness. As such, the strategic behavior of firms in a global marketplace no longer boils down to a binary choice between exporting and making investments abroad. The large increase in intra-group trade between parent companies and foreign subsidiaries is symptomatic of a more complex strategic relationship. The globalization of value chains has intensified cross-border investment and cross-border trading in parts and components, intermediate goods and finished products. In this trading structure, goods produced in one economy and exported to a different end market involve inputs from other economies, which in turn source inputs from yet other economies. The growth of trade is due mainly to this back-and-forth of intermediate goods, which cross borders several times before the finished products and services are sold to end consumers.
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2016 ANNUAL REPORT - BUSINESS FRANCE / 13 1 Multinational firms operate in several countries, whereas domestic firms only operate in a single market. GOING GLOBAL EXPANDS GROWTH OPPORTUNITIES FOR FRENCH FIRMS Multinational firms stand out from their domestic peers due to the key strengths that make them more competitive and lead to better performance in foreign markets. 1 Adding an international dimension makes companies stronger. It is clear that natural selection is at work when successful businesses develop overseas, going on to benefit from the positive effects inherent in their multinational expansion as they tap into new markets, broaden the scope of their products or services, seek to innovate to remain competitive, manage what they produce more flexibly, play a greater role in society, offer better rewards to their employees, and thrive on the back of international recognition. Building a
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