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% in 2009. Non-tariff barriers reflected in EU and French policy include agricultural and manufacturing subsidies, quotas, import restrictions and bans on some goods and services”, (Index of Economic Freedom, 2011). As a member of the EU, France is part of the largest trading blocs, accounting for approximately 20% of global imports and exports (Index of Economic Freedom, 2011). The free trade created by the EU for member states has promoted the economic development of those particular nations. As one of the largest members of the World Trade Organization, the EU is a driving force behind multiple trade agreements and plays a vital role in promoting free trade in developing countries. countries.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 duties or special taxes “this system is advantageous since restrictions 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 reduces prices and increases the costs of providing a quality product. This requires diligent attention to manufacturing efficiency, quality control and value-added principles in order to provide a superior product at a competitive price. Foreign exchange Demand for the euro continues to increase. Investors who traditionally held their assets in dollars are now looking to other sources such as the euro as a more reliable commodity (Amadeo). President Sarkozy r...... half of the document ......Sep Oct Nov Dec2010 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 1.00PILLFrance is the second largest economy in Europe, after only Germany. The country remained relatively stable during the global economic crisis, due in part to “the relative resilience of domestic consumer spending, a large public sector, and less exposure to global demand declines than other countries” (CIA Fact Book, 2011 ). Although GDP contracted in 2009, it rebounded in 2010 and increased by 0.40%. President Sarkozy has been an advocate of economic stabilization of his country through stimulus and investment measures. However, now he and his government are trying to reduce spending and cut the deficit.