Heavy engineering, reflected in the success of the TGV and nuclear industries. Specialization in key fields such as automobiles (Renault and Citroδn) and telecommunications (Alcatel). Luxury goods: France is world leader in cosmetics, perfumes and quality wines. Defense sector a major exporter, particularly of Dassault "Mirage" jets and "Exocet" missiles. French technocratic traditions mean that, unlike the USA or UK, top graduates are attracted into engineering. Most agriculture well-modernized. Docile trade unions; only 12% of the French work force is unionized.
Weaknesses
High unemployment, currently running at over 11%. Many sectors of industry still failing to compete due to outmoded work practices, particularly in machine tools, electric consumer durables and some textiles. Some of the major high-tech industries, such as telecommunications, partly run to further national pride, rather than on a strictly commercial basis. Despite agricultural modernization, there are still many small farms.
Profile
Compared to Germany and Britain, France was slow to industrialize. The 1950s and 1960s brought major changes. Protectionist France started competing in world markets and modernizing its industry with considerable success. By the 1980s, France was among the world's top three exporters. France has a long tradition of state-ownership. Between 1938 and 1945 Air France, Renault, the railroads, the coal, electricity and gas industries, large insurance companies and banks were nationalized. Between 1986 and 1988, a right-of-center government reversed the policy. But even after the massive sell-offs, much of the economy remains under state control. France is the EU's largest agricultural producer and its farmers are a powerful political lobby.
