France's trade policy is the same as that of other members of the European Union. The EU's common weighted average tariff rate was 1.2 percent in 2009. Non-tariff barriers reflected in EU and French policy include agricultural and manufacturing subsidies, quotas, restrictions on importation and bans on certain goods and services” (Index of Economic Freedom, 2011). As a member of the EU, France is among the largest trading blocs, accounting for approximately 20% of global imports and exports (Index of Economic Freedom, 2011). The open trade created by the EU for member states has promoted the economic development of these particular countries. As one of the largest members of the World Trade Organization, the EU is a driving force behind many trade agreements and plays a vital role in promoting open trade in developing countries. country.Management ImplicationsThe EU has created a borderless system that allows unhindered trade between businesses. Businesses can buy and sell goods wherever they want without having to pay customs duties or special taxes: “this system is beneficial because limitations on the sale of products across the continent are non-existent” (EU and Trade, 2006). However, the free trade system brings more competition. Consumers have more product choices, which lowers prices and increases the cost of delivering a quality product. This requires diligent focus on production efficiency, quality control and value-added principles in order to deliver a superior quality product at a competitive price. Foreign Exchange Demand for the euro continues to increase. Investors who traditionally held their assets in dollars are now turning to other sources such as the euro as a more reliable commodity (Amadeo). President Sarkozy has...... middle of paper ......sept. Oct Nov Dec 2010 1.10 1.30 1.60 1.70 1.60 1.50 1.90 1.40 1.60 1.60 1.60 1.702009 0.70 0.90 0.30 0.10 -0.30 -0.50 -0.70 -0. 20 -0.50 - 0.40 -0.20 0.902008 2.80 2.80 3.20 3.00 3.30 3.60 3.60 3.20 3.00 2.70 1.60 1 ,00GDPFrance has the second largest economy in Europe, behind Germany. The country has been relatively stable during the global economic crisis, in part due to the "relative resilience of domestic consumer spending, a large public sector and less exposure to the slowdown in global demand than in some other countries" (CIA Fact Book, 2011). ). Although GDP contracted in 2009, it rebounded in 2010 and grew by 0.40 percent. President Sarkozy has been a supporter of the economic stabilization of his country through recovery and investment measures. However, he and his government are now discovering the need to cut spending and reduce the deficit..