All Work Solver
Italy
Country Analysis
Alisa Wood
Southern New Hampshire University
INT114
Professor Ward
Introduction Italy
Rationale
I selected Italy as I am third generation Italian American. Not only is Italy home to many major fashion designers and brands it is also where my family in Sicily produces and exports olive oil. I am interested in learning more about my heritage and the country.
Regional location: Southern Europe
Water access: Adriatic Sea, Tyrrhenian Sea, Ligurian Sea, Mediterranean Sea
Bordering countries: Austria, France, Holy See (Vatican City), San Marino, Slovenia, Switzerland
Natural hazards or climate: Landslides, mudflows, avalanches, earthquakes, volcanic eruptions, flooding
World Atlas, 2021
Central Intelligence Agency. (n.d.). Retrieved September 02, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/
World Atlas. (2021, February 25). Italy maps & facts. Retrieved September 02, 2021, from https://www.worldatlas.com/maps/italy
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Sociocultural Environment
| Literacy rate | 99.2% (15 and older) |
| Rate of urbanization | 0.27% (annual rate of change) and 71.3% urban population |
| Heavily populated cities | Rome (4.278m), Milan (3.144m), Naples (2.183m), Turin (1.795m) |
| Major religions | Christian (80.8%) * Overwhelming Roman Catholic, unaffiliated 13.4%, Muslim 4.9%, other 0.9& |
| Educational data | Education expenditures (4% of GDP) |
| Age structure | 0–14 (13.45%) 15–24 (9.61%) 25–54 (40.86%) 55–64 (14%) 65+ (22.08%) |
Country Composition
Literacy rate
99.2% (15 and older)
Rate of urbanization
0.27% (annual rate of change) and 71.3% urban population
Heavily populated cities
Rome (4.278m), Milan (3.144m), Naples (2.183m), Turin (1.795m)
Major religions
Christian (80.8%) * Overwhelming Roman Catholic, unaffiliated 13.4%, Muslim 4.9%, other 0.9&
Educational data
Education expenditures (4% of GDP)
Age structure
0–14 (13.45%)
15–24 (9.61%)
25–54 (40.86%)
55–64 (14%)
65+ (22.08%)
Central Intelligence Agency. (n.d.). Retrieved September 02, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/
World Atlas. (2021, February 25). Italy maps & facts. Retrieved September 02, 2021, from https://www.worldatlas.com/maps/italy
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Religion
Religion
Christian unaffiliated Muslim other 80.8 13.4 4.9000000000000004 0.9
Sociocultural Environment
Values and Communication
Language: Italian (93%), Friulian Dialect (1%), Sardinian (1.7%)
*50% of the population have a regional dialect and can be considered different languages
Nonverbal: The concept of “bella figura” or good image is important to Italians. It is more than dressing well it also includes confidence, style and demeanor.
Business Etiquette
Appointments are mandatory and should be in writing 2-3 weeks in advance
Place value on being dressed well
Many businesses are closed in August - Time is flexible in Italy
Place value on relationships - Initial meetings are to develop trust and respector topics to consider talking about
| Power Distance: Score 50 | Dependent Hierarchical Aversion to being controlled |
| Individualism: Score 76 | Personalization “Me” centered Differs between Northern (Colder) and Southern (Warmer) |
| Masculinity: Score 70 | Masculine style Competitive Success Oriented Materialistic Status |
| Uncertainty Avoidance: Score 75 | Formality Norms and Procedures Detailed Planning |
| Long-Term Orientation: Score 61 | Pragmatic Traditional Context and time Perseverance in results |
Hofstede’s Dimensions of Culture: Italy (Hofstede, 2021)
Hofstede’s Dimensions of Culture: Italy (Hofstede, 2021)
Central Intelligence Agency. (n.d.). Retrieved September 02, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/
World Atlas. (2021, February 25). Italy maps & facts. Retrieved September 02, 2021, from https://www.worldatlas.com/maps/Italy
Commisceo Global Consulting Ltd. (n.d.). https://www.commisceo-global.com/resources/country-guides/switzerland-guide.
Country comparison. Hofstede Insights. (2021, June 21). https://www.hofstede-insights.com/country-comparison/switzerland/.
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Sociocultural Environment: Observation Deck
Italians prefer to do business in person with people they can trust. Building and maintaining relationships are important for business. Italians prefer to have stability rather than ambiguity.
Dressing well is a priority and conservative business suits with accessories are important.
Hierarchy, social status and competition all attribute to Italy’s success oriented and driven mentality. Hierarchy is important with a great respect for power and age. Negotiations should be held between high-ranking positions.
The geographic location allows access to neighboring countries allows for goods to be easily imported and exported.
The heavily populated cities are distributed throughout the county. Rome has the largest population and is centrally located in the country, followed closely by Milan which is centrally located to neighboring countries.
Although nearly 41% of the country’s age structure is in the 25-54 range the country’s median age is 46.5 and the entering labor force is a mere 9.6% of the population which could potentially create a labor shortage.
Central Intelligence Agency. (n.d.). Retrieved September 02, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/
Commisceo Global Consulting Ltd. (n.d.). https://www.commisceo-global.com/resources/country-guides/switzerland-guide.
Country comparison. Hofstede Insights. (2021, June 21). https://www.hofstede-insights.com/country-comparison/switzerland/.
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This Photo by Unknown Author is licensed under CC BY
Political – Legal Environment
Government and Ideologies:
| Government Type | Parliamentary Republic |
| Political Leader(s) | President Sergio Mattarella (2/2015-current); Prime Minister Mario Draghi (1/2021) |
| Political Pressure (or Opposition) Groups | Governing Coalitions: Five Star Movement (MS5), League Left-center-right Opposition: Democratic Party (PD), Forza Italia (FI), Brothers of Italy |
| Recent Changes in Governing Rule | Prime Minister Giuseppe Conte resigned 1/2021 |
Corruption
| Bribe Index | Rank: 15 Score: 7.6 |
| Corruption Perception Index | Rank: 52/180 Score: 53/100 |
| OECD Anti-Bribery Convention | Enforcement: low-moderate |
| Control of Corruption | 62.2% |
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Political-Legal Environment
De Matteis, A., Accardo, P., & Mammone, G. (2011, June 17). National Labour Law Profile: Italyaldho. National Labour Law Profile: Italy. Retrieved September 23, 2021, from https://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158903/lang--en/index.htm.
1. (n.d.). Italy - import requirements and documentation. International Trade Administration | Trade.gov. Retrieved September 24, 2021, from https://www.trade.gov/country-commercial-guides/italy-import-requirements-and-documentation.
De Matteis, A., Accardo, P., & Mammone, G. (2011, June 17). National Labour Law Profile: Italyaldho. National Labour Law Profile: Italy. Retrieved September 23, 2021, from https://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158903/lang--en/index.htm.
Italy. Italy Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. (n.d.). Retrieved September 24, 2021, from https://www.heritage.org/index/country/italy.
Italy. OECD. (n.d.). Retrieved September 24, 2021, from https://www.oecd.org/italy/.
World tax rates 2021. TaxRatesorg The 2019 Tax Resource RSS. (n.d.). Retrieved September 24, 2021, from http://world.tax-rates.org/italy/sales-tax.
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Italy has no statutory minimum wage, all workers are guaranteed a living wage (ILO, 2021)
Average annual wage is 37.8k (OECD, 2021)
Italy labor law sets hours of work at a maximum of 40 hours of work per week not to exceed 48 hours (8 hours of overtime). (ILO, 2021).
Paid Leave guarantees all workers to have a right to one rest day per week, 24 hour consecutively (ILO, 2021).
Maternity leave is protected from the beginning of pregnancy to one year after the child is born (ILO, 2021).
VAT (sales tax): 20%Sales Tax (World Tax Rates, 2021)
Political-Legal Environment
Trade Regulations and Legal Considerations
Italy’s economy has been moderately free with an economic freedom score is 64.9 (Heritage, 2021).
Italy is a charter member of the North Atlantic Treaty Organization (NATO) and the European Union (Heritage, 2021).
There are restrictions on hazardous substances and electrical equipment (International Trade Administration, 2020).
This Photo by Unknown Author is licensed under CC BY
1. (n.d.). Italy - import requirements and documentation. International Trade Administration | Trade.gov. Retrieved September 24, 2021, from https://www.trade.gov/country-commercial-guides/italy-import-requirements-and-documentation.
De Matteis, A., Accardo, P., & Mammone, G. (2011, June 17). National Labour Law Profile: Italyaldho. National Labour Law Profile: Italy. Retrieved September 23, 2021, from https://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158903/lang--en/index.htm.
Italy. Italy Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. (n.d.). Retrieved September 24, 2021, from https://www.heritage.org/index/country/italy.
Italy. OECD. (n.d.). Retrieved September 24, 2021, from https://www.oecd.org/italy/.
World tax rates 2021. TaxRatesorg The 2019 Tax Resource RSS. (n.d.). Retrieved September 24, 2021, from http://world.tax-rates.org/italy/sales-tax.
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Political-Legal Environment: Observation Deck
Business Observations
Institutions in Italy that have higher corruption rates are National (27%) & Local (22%) Government Officials; Parliament (32%); Business Execs (25%)
Significant Improvement in corruption perception index, up 11 points since 2012.
Bribery: 34% of people thought corruption increase YoY and 2% - 3% of public service users that paid a bribe YoY
Persistent problems with organized crime and disparities between Northern and Southern Italy
Italy's score of 53 is less than the average for the Western Europe & European Union average of 66/100
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This Photo by Unknown Author is licensed under CC BY-SA
Economic-Infrastructural Environment
Economic Measures
| Interest Rates (Trading Economics) | 0% |
| Unemployment (Central Intelligence Agency, 2021) | Total: 29.2% (2021) Country comparison: 33 |
| Inflation (Central Intelligence Agency, 2015) | 0.6% (2019) Country comparison: 47 |
| GDP real growth rate (Central Intelligence Agency, 2021) | 0.34% (2019) Country comparison:187 |
| Exchange Rates (Central Intelligence Agency, 2015) | 1 Euro = $ .82771 USD (2020) |
| GDP (Central Intelligence Agency, 2021) | 2.56 trillion (2019) |
| Labor Force (Central Intelligence Agency, 2021) | 22.92-million (2020) Country comparison:24 |
| Major Industries (Central Intelligence Agency, 2021) | Tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics. |
| FDI Rates (The World Bank, 2021) | 31.19-million (Inflow as of 2019) |
Trade
| Major Trading Partners | Exports: EU 50.3%, USA 9.6%, Switzerland 5.5%, UK 5.2%, China 2.7%, Other 26.7% Imports: EU 56.6%, China 7.5%, USA 4%, Russian Federation 3.4%, Switzerland 2.6%, Other 25.9% |
| Major Imports/Exports | Exports: Agricultural products 9.4% Fuels and mining 5.9% Manufactures 82.7% Other 2% Wine, cheese, pasta, medicaments, motor cars, parts for moto cars, oils other than crude, trunks, suitcases Imports: Agricultural products 12% Fuels and mining 18.3% Manufactures 68.4% Other 1.3% Swine, cigars, bovine, wheat, motor cars, crude oils, petroleum gas, human and animal blood |
| Regional Trade Agreements and Member Countries (International Trade Administration, 2021) | Italy (EU) Trade agreements with China (Comprehensive Agreement on Investment), United Kingdom (Cooperation Agreement), New Zealand (Bilateral), Australia (Bilateral), Mexico (Agreement in Principle), Japan (Economic Partnership Agreement), Canada (Comprehensive and Economic Trade Agreement (CETA)), Mercosur (Comprehensive), Singapore (Free Trade and Investment Protection) and Vietnam (Investment Protection) |
Central Intelligence Agency. (n.d.). Central Intelligence Agency. Retrieved October 8, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/.
Italy - trade agreements. 1. (n.d.). International Trade Administration | Trade.gov. Retrieved October 8, 2021, from https://www.trade.gov/knowledge-product/italy-trade-agreements.
Regional Trade Agreements Database. WTO. (n.d.). Retrieved October 8, 2021, from http://rtais.wto.org/UI/PublicMaintainRTAHome.aspx.
Airports in Italy. FlightConnections. (n.d.). Retrieved September 30, 2021, from https://www.flightconnections.com/airports-in-italy-it.
Central Intelligence Agency. (n.d.). Retrieved September 29, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/
Gsma. (n.d.). GSMA – mobile network coverage maps. Coverage Maps. Retrieved September 30, 2021, from https://www.gsma.com/coverage/#5972.
Italy interest Rate2021 DATA: 2022 forecast: 1998-2020 Historical: Calendar. Italy Interest Rate | 2021 Data | 2022 Forecast | 1998-2020 Historical | Calendar. (n.d.). Retrieved September 30, 2021, from https://tradingeconomics.com/italy/interest-rate.
Italy train map. ItaliaRail. (n.d.). Retrieved September 30, 2021, from https://www.italiarail.com/italy-rail-map.
Logistics performance Index: Overall (1=low to 5=high) - Italy. Data. (n.d.). Retrieved September 30, 2021, from https://data.worldbank.org/indicator/LP.LPI.OVRL.XQ?locations=IT&view=chart.
Ports with Liner service in Italy. World Port Source. (n.d.). Retrieved September 30, 2021, from http://www.worldportsource.com/shipping/country/ports/ITA.php.
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Economic-Infrastructural Environment
(Italiarail.com, 2021)
| Major Airports/Seaports | Seaports with container liner service (World Port Source, 2021): (19 total) Ancona, Bari, Cagliari, Genoa, La Spezia, Livorno, Napoli, Palermo, Pozzallo, Ravenna, Venezia International Airports (Flight Connections, 2021): Lamezia Terme, Orio al Serio, Malpensa, Naples, Federico Fellini, Rome Leonardo Di Vinci, Turin, Venice Marco Polo, |
| Railway Stations (Government websites) | Illustration below |
| Internet Users (Central Intelligence Agency, 2021) | 46.3-million (2018) Country comparison: 19 |
| Mobile Providers (GSMA,2021) | Wind Tre, TIM, Vodafone, Linkem, Go Internet, Tiscali, Ilad |
| Logistics Performance Index Rating (The World Bank, 2021) | 3.74 (2018) |
Airports in Italy. FlightConnections. (n.d.). Retrieved September 30, 2021, from https://www.flightconnections.com/airports-in-italy-it.
Central Intelligence Agency. (n.d.). Retrieved September 29, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/
Gsma. (n.d.). GSMA – mobile network coverage maps. Coverage Maps. Retrieved September 30, 2021, from https://www.gsma.com/coverage/#5972.
Italy interest Rate2021 DATA: 2022 forecast: 1998-2020 Historical: Calendar. Italy Interest Rate | 2021 Data | 2022 Forecast | 1998-2020 Historical | Calendar. (n.d.). Retrieved September 30, 2021, from https://tradingeconomics.com/italy/interest-rate.
Italy train map. ItaliaRail. (n.d.). Retrieved September 30, 2021, from https://www.italiarail.com/italy-rail-map.
Logistics performance Index: Overall (1=low to 5=high) - Italy. Data. (n.d.). Retrieved September 30, 2021, from https://data.worldbank.org/indicator/LP.LPI.OVRL.XQ?locations=IT&view=chart.
Ports with Liner service in Italy. World Port Source. (n.d.). Retrieved September 30, 2021, from http://www.worldportsource.com/shipping/country/ports/ITA.php.
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Economic-Infrastructural Environment: Observation Deck
Business Observations
47.1% of Italy’s land use is for agricultural needs. Agricultural land supplies the grapes needed for one of the country’s top exports for Italy, wine. The land use is also necessary for dairy cows.
Italy’s geography allows for several ports of entry and exit for goods and services to be imported/exported by sea, air, or other.
In 2019 The United States of America began trade negotiations with the EU
According to cia.gov in 2017 exports of goods was up 31.4%, whereas imports were -28.3%
Due to Italy’s geography and accessibility to several countries importing and exporting should be relatively easy due to numerous seaports, airports, and railways stations.
The Interest rate for Euro is currently 0 according to Trading Economics.
Northern and Southern Italy’s major industries are diverse and can be easily accessed throughout the country.
This Photo by Unknown Author is licensed under CC BY
Airports in Italy. FlightConnections. (n.d.). Retrieved September 30, 2021, from https://www.flightconnections.com/airports-in-italy-it.
Central Intelligence Agency. (n.d.). Retrieved September 29, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/
Gsma. (n.d.). GSMA – mobile network coverage maps. Coverage Maps. Retrieved September 30, 2021, from https://www.gsma.com/coverage/#5972.
Italy interest Rate2021 DATA: 2022 forecast: 1998-2020 Historical: Calendar. Italy Interest Rate | 2021 Data | 2022 Forecast | 1998-2020 Historical | Calendar. (n.d.). Retrieved September 30, 2021, from https://tradingeconomics.com/italy/interest-rate.
Italy train map. ItaliaRail. (n.d.). Retrieved September 30, 2021, from https://www.italiarail.com/italy-rail-map.
Logistics performance Index: Overall (1=low to 5=high) - Italy. Data. (n.d.). Retrieved September 30, 2021, from https://data.worldbank.org/indicator/LP.LPI.OVRL.XQ?locations=IT&view=chart.
Ports with Liner service in Italy. World Port Source. (n.d.). Retrieved September 30, 2021, from http://www.worldportsource.com/shipping/country/ports/ITA.php.
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Final Recommendations
Market Entry Strategies: I would recommend a US company to enter Italy for specific established industries. American companies in hospitality, manufacturing, or transportation. Italy is backed by the EU trade agreement and would be similar for entering other European countries. The location is ideal due to the points of entry and accessibility within the country as well as importing and exporting goods and services. Italy’s GDP is one of the strongest in the world. The cost to enter the Italy is among the highest and taxes remain high as well.
Cultural Awareness: Italy’s dimensions resemble some similarities compared to the United States. Power distance, Masculinity are close in comparison, however, uncertainty and long-term orientation would need to be considered.
https://www.hofstede-insights.com/
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Works cited
Airports in Italy. FlightConnections. (n.d.). Retrieved September 30, 2021, from https://www.flightconnections.com/airports-in-italy-it.
Central Intelligence Agency. (n.d.). Retrieved September 02, 2021, from https://www.cia.gov/the-world-factbook/countries/italy/
Commisceo Global Consulting Ltd. (2020, January 1) Italy- Language, Culture, Customs and Etiquette. Retrieved from https://commisceo-global.com/resources/country-guides/italy-guide
Country comparison. Hofstede Insights. (2021, June 21). https://www.hofstede-insights.com/country-comparison/italy,the-usa/.
De Matteis, A., Accardo, P., & Mammone, G. (2011, June 17). National Labour Law Profile: Italyaldho. National Labour Law Profile: Italy. Retrieved September 23, 2021, from https://www.ilo.org/ifpdial/information-resources/national-labour-law-profiles/WCMS_158903/lang--en/index.htm.
Gsma. (n.d.). GSMA – mobile network coverage maps. Coverage Maps. Retrieved September 30, 2021, from https://www.gsma.com/coverage/#5972.
International, T., & Transparencyinternational. (n.d.). Bribe payers Index 2011. Issuu. Retrieved September 17, 2021, from https://issuu.com/transparencyinternational/docs/bribe_payers_index_2011.
This Photo by Unknown Author is licensed under CC BY-SA
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Works cited
1. (n.d.). Italy - import requirements and documentation. International Trade Administration | Trade.gov. Retrieved September 24, 2021, from https://www.trade.gov/country-commercial-guides/italy-import-requirements-and-documentation.
Italy. Italy Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. (n.d.). Retrieved September 24, 2021, from https://www.heritage.org/index/country/italy.
Italy. OECD. (n.d.). Retrieved September 24, 2021, from https://www.oecd.org/italy/.
Italy interest Rate2021 DATA: 2022 forecast: 1998-2020 Historical: Calendar. Italy Interest Rate | 2021 Data | 2022 Forecast | 1998-2020 Historical | Calendar. (n.d.). Retrieved September 30, 2021, from https://tradingeconomics.com/italy/interest-rate
Italy train map. ItaliaRail. (n.d.). Retrieved September 30, 2021, from https://www.italiarail.com/italy-rail-map
Italy. Transparency.org. (n.d.). Retrieved September 17, 2021, from https://www.transparency.org/en/countries/italy.
Ports with Liner service in Italy. World Port Source. (n.d.). Retrieved September 30, 2021, from http://www.worldportsource.com/shipping/country/ports/ITA.php.
World Atlas. (2021, February 25). Italy maps & facts. Retrieved September 02, 2021, from https://www.worldatlas.com/maps/italy
World tax rates 2021. TaxRatesorg The 2019 Tax Resource RSS. (n.d.). Retrieved September 24, 2021, from http://world.tax-rates.org/italy/sales-tax.
This Photo by Unknown Author is licensed under CC BY-SA
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