METHODOLOGY – Definitions

Definitions

Economic Activities

Activities organised for the purpose of producing goods and services. The classification system for activities provides standard categories which cover a range of diverse activities . each company is classified into the sector which corresponds with its principal activity.

Balance of trade

The net balance of trade taking account of imports and exports of goods. Services are not taken into account.

Capital equipment

Capital equipment industries comprise three sectors: ship-building, aerospace and railways; machinery and equipment; electrical & electronic equipment.

Consumer products

Consumer products industries comprise four sectors: garment & leather; printing, publishing & reproduction; pharmaceuticals, perfume & cleaning; household equipment

Intermediate,
semi-finished products

Intermediate unfinished product industries comprise six sectors: extraction of minerals; textiles; timber & paper; chemicals, rubber & plastics; metals; electrical & electronic components.

Branch

Those parts of a company which undertake a common activity.

Turnover (pre-tax)

ventes de marchandises et productions vendues de biens et services (hors taxes)

Export turnover

Turnover derived from sales to countries other than France.

Defaults

Companies which are either: insolvent, in administration, in wind-up proceedings or bankrupt.

Population density

Number of inhabitants per km²

Department

France was divided into departments by a law passed on 22 December 1789. Departments are administrative units with geographic boundaries. Departments are one of the most important strata in the organisation of French society and public activities. Each department has an elected body and an executive. The head of this elected body does not act as a representative of the national government, that role is embodied in the Prefect of the department. There are 96 departments, of which two fall within Haute-Normandie.

Workforce

People in employment as recorded at 31 December. The most recent workforce estimates which are available are for 31 December 2000.

Company

An independent economic unit set up to produce and/or market goods or services. Should be distinguished from a business or operating unit, which is a physically free-standing entity but which is legally a subsidiary of a company.

Workforce estimates

Workforce estimates as at 31 December, segmented by location and type of activity. Estimates are derived from a range of statistics, include the public sector and reflect national census results.

Business unit

Free-standing physical unit for the production of goods and/or services, such as a depot or factory. Such units belong to companies. This is the level at which observations can be made about the localisation of economic activities.

Exported FOB
(Free on Board)

Exports are valued according to the value they represent when they have reached a point from which they can be exported without further costs arising on French territory. Includes cost of transportation and insurance as far as the national border, together with any taxes and/or duties payable.

Large companies

Companies with more than 500 employees.

Group or Corporation

A group of companies under the common ownership of a parent company, which is not itself controlled by any other legal entity.

Import CIF
(Cost, Insurance
& Freight)

Imports are valued according to the value they represent when they arrive at the French border, includes cost of the goods, plus transportation and insurance required to bring the goods to the French border.

Regional specific index

The weighting of the sector (in terms of whatever variable is being considered: turnover, added value, workforce,….) in Haute-Normandie industry compared against the same weighting at national level.

Investment

Expenditure incurred in acquiring or creating capacity for the production of goods and/or services. Includes current assets, but excludes intangible assets, financial assets and equipment financed by hire-purchase.

Median

The median salary is the level of salary such that half of the workforce receives a higher salary and half a lower salary.

Medium sized companies

Companies with between 20 and 499 employees.

Small companies

Companies with fewer than 20 employees.

Productivity per person

Value added per employee.

Gross operating profit

Gross profit after allowing for production costs but not taking account of salaries, taxes and other staff related costs.

Sector

Classification of activities which incorporates all of the business units with the same principal activity.

Company

Legal entity, embodied by a contract between several individuals for the pursuit of mutual profit obtained by providing goods and/or services to others.

Parent Company

Company which owns more than 50% of another company. The latter is termed the subsidiary of the former.

Management as percentage of workforce

Percentage of the workforce who are managers.

Exports as percentage of turnover

Value of exports as percentage of turnover.

Value added as percentage of turnover

Value added as percentage of turnover

Investment as percentage of value added

Investment as percentage of value added.

Export/import ratio

Ratio of exports to imports.

Start-up rate

Rate at which new businesses have been set up, (five year average). Can relate to individual sectors or industries. Calculated as the number of start-ups from scratch during the five year period compared with the number of business units already present at the start of the period

Rate of subsidiarity

The percentage of the Haute-Normandie workforce employed in business units with headquarters outside the Haute-Normandie region.

Women as percentage of workforce

Women as percentage of workforce.

Women as percentage of management

Women managers as percentage of management workforce.

Margin

Ratio of value of outputs to costs of inputs.

Skilled manual workers as percentage of all manual workers

Skilled manual workers as percentage of all manual worker

rate of expansion outside the region

Rate of expansion outside the region: the percentage of the workforce which is employed outside the Haute-Normandie region by companies whose headquarters are located inside Haute-Normandie.

Value added

Sales turnover (excluding taxes) + value of unsold production – cost of raw materials.

Net value added

Value added + costs of production operations – taxes and duties.

Employment zone

France was divided into employment zones with effect 1st January 1994, based on the 1990 census. There are 348 employment zones, of which 13 are within Haute-Normandie. Zones are effectively sub-divisions of regions, and do not cross regional boundaries. They are defined so in terms of de super-sets of communes. Communes do not cross zone boundaries. Zones group together segments of the population with common economic characteristics. There are zones which have large populations based in urban centres, such as the employment zone of Rouen. Other zones have small populations and are rural in character, such as the employment zone of Bernay.


Updated : October 2002

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