Invest in France

The Nordic countries and France have a long history of trade relations and cultural exchanges going back to the 9th century. France is today the second largest economy in Europe and there is a good potential in Franco-Nordic trade, which today is not fully exploited.

It is an important factor to be able to negotiate with counterparts from foreign cultures. To succeed, you need to acquire knowledge about different aspects of negotiations between companies from different countries, since the negotiation style is to a large extent influenced by culture.

Verbal Language

The language is definitely an important detail. It is better to speak bad French than good English. The French appreciate if you make an effort to adapt to the situation even if you do not speak very well. It is probably more important to understand the French mentality than to speak grammatically correct French.

There are two factors influencing whether a French person speaks English or not. One is age. The younger the people you meet the greater the chance that they speak good English. The other factor is the industry in which the person works and his/her education level. In some industries even older people speak very good English. It is not possible to do medical research, for example, without speaking very good English.

The French do not speak bad English, even though it is not as good as ours. They have a good vocabulary. When a Frenchman is in a negotiating position he wants to control the situation. If they are reluctant to speak English it is because they know that the Scandinavian across the table speaks much better English than he does, which means that he would have a disadvantage.

If the language is a real problem, it might be a good idea to let the French speak French and let the other person (you) speak the language you know. To understand each other you have to have someone who speaks both languages and who can put it together. An interpreter is not always a good idea since they don’t understand the subject, better is someone who is part of the project.

Regarding written French it is important for it to be correct. That goes for all languages, but in particular French. There are many conventions depending on how well you know each other, for how long you have known each other, what it concerns, if you are complaining about something or if you are selling something.

Even if you know French and can write it your self it is good to have it check before you send it away.

Non-verbal Language

The French negotiators’ body language is generally very lively and can be distracting for Nordic negotiators who are not used to it. They talk as much with their body, gestures and facial expressions. Nordic people are often very calm and do not show their feelings as much as the French do.

Type of Decision

Decision-making in France is highly influenced by the hierarchical organisation of French companies. Decisions are made independently, if the person has a sufficiently high position to have decision authority. Whether the counterpart has decision authority or not depends on his/her position in the organisation. People high up in the organisation can take independent decisions but people lower down have to consult their superiors and it is they who will take the final decision. It is important to find out who will take the final decision to try to get in touch with him/her. The length of the decision process is also related to the counterpart’s decision authority. If the counterpart can make a decision without consulting his/her superiors the decision process is short. Otherwise it can be longer.

In the Nordic countries the consensus thinking is very important. You generally sit and talk for a long time and then you take a decision that is somewhat of a compromise for everyone. In France it is completely different. The decision is often taken by someone higher up in the pyramid.

The French are very competent to make decisions, to the extent that they can make them independently. That is also a result of the hierarchical system. Taking decisions is a way to show that you have authority and status. French might even think that it takes a long time for the Scandinavians to make decisions.

Personal Relations

In business relations the French are more reserved than Nordic people and they keep their distance more.

Building up personal relations with a French counterpart is generally seen as difficult and time consuming. The French prefer to keep their distance and do not like to talk about their private life. They do however like to discuss to get to know the person they are negotiating with. To facilitate the building-up of personal relations with a French counterpart it is important to show interest in the French and the French culture and try to adapt as much as possible. The French are proud of their country and culture and appreciate when foreigners show interest in it. Speaking French also facilitates this process and makes the French open up more.

Business lunches are not as common as people seem to believe here. Sometimes it is just because people are so busy so that having lunch together is the only way to meet. This has radically changed during the past twenty years. Long lunches and even dinners were far more common twenty or even ten years ago.

Formality

There are certain formalities that are of importance when negotiating with a French counterpart. The French are rather formal and polite. The most important formality is that you never address someone with ‘tu’ (the informal form for you), you always use the more formal ‘vous’ (the more formal form for you). Another thing is that you should never start negotiating at once. The French like to discuss to get to know their counterparts and this includes not starting to talk business at once.
Keeping continuity in the personal relations with French counterparts is very important. However, there is nothing particular in doing this. It is done in the same way as in most other European countries, answering letters and phone calls and keeping in touch.

The French are much more concerned with their appearance and have more correct clothing than Scandinavians do. It is important to be correctly dressed, i.e. wearing a suit and a tie.

Concerning the use of the words ‘yes’ and ‘no’, one can usually trust a French counterpart who says yes. However, a no is much more uncertain. A French negotiator often says no as an invitation to continue the negotiation. This is important to know for a Nordic negotiator so that he/she does not give up too soon in the negotiation process.

Bargaining Tactics

The French negotiators do not bargain more than what is common in most Western European countries. French are sometimes said to always discuss the price, but that this is more related to the fact that they want to discuss every detail of the deal.

Verbality is important for the French, they are very verbal and value the fact that you can express yourself well. This is actually good for the French and bad for foreigners since you seldom, even if you are very good, can meet on the same level. The French have a great understanding for this though and they accept this imperfection but for the French themselves it is very important and it is not accepted from a French speaking person.

This verbality also gives them a tendency to wander from the subject, which can sometimes be irritating for Nordic negotiators who are not used to this.
Related to this is also the fact that the French like to discuss, sometimes only out of principle or to get to know the person they negotiate with.

The French negotiators are seen as intelligent and well educated and they are very skilful negotiators. You cannot start negotiating with a French counterpart thinking that you can do it without being well prepared. The French are also proud, they do not like to admit that they are wrong. In the Nordic countries the boss is more of a co-ordinator but in France he is supposed to be able to answer everything. For a Nordic boss it would sometimes be better to answer something without knowing if it is correct to 100% rather than to admit to that you do not know.

Attitude to Female Negotiators

French do not make any difference between men and women. You are generally accepted for who you are and for what you represent whether you are a man or a woman. French are very good at treating men and women equally, but still be very polite towards the women. Just because they open the door for a woman it does not mean that there is a difference between men and women. It is just a way of being together which is completely natural. There are more female managers in high positions in France than in the Nordic countries.

Source: Master thesis based on the experiences done by Scandinavian businessmen living in France , Malin Kanflo, Gothenburg School of Economics and Commercial Law

The IT Business in Côte d’Azur – Sophia Antipolis

SUCCESS STORY: SOCO SYSTEM

How do you negotiate with a Frenchman?

The 2004 Europe's 500 Listing

« A la une »

IFA Nordic Countries

Our Services:

1. Information on investment issues

2. Customised, confidential and practical assistance

3. Securing public support

4. Ongoing assistance