The French Challenge deals with France's effort to adapt to globalization and its consequences for France's economy, cultural identity, domestic politics, and foreign relations. The authors begin by analyzing the structural transformation of the French economy, driven first by liberalization within the European Union and more recently by globalization. By examining a wide variety of possible measures of globalization and liberalization, the authors conclude that the French economy's adaptation has been far reaching and largely successful, even if French leaders prefer to downplay the extent of these changes in response to political pressures and public opinion. They call this adaptation "globalization by stealth."

The authors also examine the relationship between trade, culture, and identity and explain why globalization has rendered the three inseparable. They show how globalization is contributing to the restructuring of the traditional French political spectrum and blurring the traditional differences between left and right. Finally, they explore France's effort to tame globalization—maîtriser la mondialisation—and the possible consequences and lessons of the French stance for the rest of the world.

Although culture is not at the heart of the policy agenda of the current French administration, it will likely be affected by the Sarkozy revolution. French culture seems to be in a state of crisis, as evidenced both by the end of its ‘rayonnement’ outside of France and by its diminutive focus on the producers instead of the consumers of cultural goods. The options available for reform can, paradoxically given France’s history of policy opposition to American culture, be inspired by what is done in the United States, as is suggested by Fre´de´ ric Martel’s 2006 book De la Culture en Ame´rique. A reform of French cultural policy would have implications both for foreign and for domestic policies.