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Vanderbilt Journal of Transnational Law

First Page

361

Abstract

Direct investment in France by non-French persons is subject to governmental regulations. The primary purpose of these regulations is to enable the French Ministry of Finance, in liaison with other authorities, to examine the merits of any proposed foreign investment in France. Most foreign direct investment must be approved in advance by the Ministry in order to protect the French economy from foreign domination and to encourage increased employment and improved technology. To these ends, the regulations confer on the Ministry the right to refuse its consent to most proposed investments. In carrying out its responsibilities, the Ministry's policy in recent years has been to favor the formation of new companies over the acquisition of existing businesses.

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