Any barriers to trade raise the costs, either indirectly or directly, to the company attempting to produce a particular good

or service. Typhoon company may respond to these barriers by creating a subsidiary company that adopts business processes that are friendly to the French populace and government. France has always been distrustful of trade and commerce thats why it has a lot of policies concerning importation. One of the purposes of these policies is the ability of the foreign company to contribute to the host countrys economy via direct purchases of needed supplies from domestic producers, Two of the most common non-tariff barriers for France are the Local Content Purchases and the Employment Law. A Local Content Purchases requirement is a requirement that some specific portion of a good, or the good itself, be domestically produced The Local Content Purchases barrier adds another layer of hidden cost to the price of the product because lower priced and even better quality products that are available outside of those made by French companies cannot be used. Although France does not specifically require the use of domestically produced products, it does discourage the importation of those products by having these non-tariff barriers in place that either raise the cost or limit the quantities of imported products. In this case Typhoon could reinforce the idea that it is a company that does business locally by marketing itself that way, by partnering with other French companies to offer products that are distinctly local fare. The Employment Law situation poses some severe challenges to companies. In France, the 35-hour workweek has been mandatory since 2002 and is one of many regulations that prevent companies from having flexibility in their workforce. Even with the high unemployment rate and the plentiful labor supply existing in France, Typhoon could be unable to use market forces, such as supply and demand, to extract labor cost savings from its employees. Additionally, because the labor market is relatively inflexible Typhoon could be unable to adjust its workforce to changing business needs. The costs of complying with these regulations could be passed onto the consumer in the form of higher product prices. These barriers when viewed either individually or combined represent an insurmountable barrier to market penetration or profitability for Typhoon, but with a different approach to management strategy (trained manangement staff) could overcome the difficultes encountered.