Italy

Country Analysis

Patricia Franks
 Introduction: Italy
Rationale
I have chosen Italy as my country for my final project. My grandfather’s family is
from there and I have always wanted to go there as it is a part of my heritage.
My daughter has been and told me all about how beautiful it is there, she told
me all about the art galleries and we can’t leave out the wine tasting. If I cannot
go in person I can research and learn as much as possible. Hopefully one day I
will make it over there.
Insert Map Here
Location and Geography (Central Intelligence Agency, 2019)
Regional location Southern Europe
Water access Mediterranean Sea, Adriatic Sea, Ionian Sea, Ligurian Sea and
Tyrrhenian Sea
Bordering countries Austria, France, Holy See (Vatican City), San Marino,
Slovenia, Switzerland
Natural hazards or landslides, mudflows, avalanches, earthquakes, volcanic (World Atlas, 2019)
climate eruptions, flooding
Sociocultural Environment
Country Composition (Central Intelligence Agency, 2019):

Literacy Rate 99.2% (15 and older)

Rate of urbanization 0.29% rate of change and urban population: 70.4%

Heavily populated cities Rome (4.21 m), Milan (3.132 m), Naples (2.198 m), Turin (1.786 m)

Major Religions Christian 80%, atheist and agnostic 20%

Educational data Educational expenditures 4.1% of GDP

Age structure 0-14 (13.6%),15-24 (9.61%),25-54 (41.82%),55-64 (13.29%),65+ (21.69%)

Sociocultural Environment
Values and Communication (Italy - Italian Language, Culture, Customs and Etiquette, 2019)
 Language: Italian (93%), Sardinian (1.7%), Albanian (.2%)
 Nonverbal: handshake with direct eye contact, air-kissing on both cheeks, pat on the back between
men
Business Etiquette (Italy - Italian Language, Culture, Customs and Etiquette, 2019)
 Appointments are mandatory and should be made in writing (in Italian) 2 to 3 weeks in advance.
 Punctuality is a virtue
 Common to be interrupted while speaking
 People often raise their voice
 Many companies are closed in August
Sociocultural Environment: Observation Deck
Business Observations

 Italy is not one of those whom like being pressured or pushed in a

certain direction.
 High-pressure methods may cause conflict and disrespect.
 Italian businessmen will not be quick to make decisions so you need
to be patient
 Trust must be earned in a business relationship, if not it could
severely hinder the ability to move forward.
Political-Legal Environment
Government and Ideologies (Central Intelligence Agency, 2019)
Government Type
Political Leader(s)
Political Pressure (or Opposition) Groups
Recent Changes in Governing Rule
parliamentary republic
President Sergio MATTARELLA
Brothers of Italy-National Alliance
Forza Italia
Northern League
Prime Minister Giuseppe took office in 2018
President Sergio MATTARELLA took office in
2015

Corruption (Transparency International, 2019)

Bribe Index Ranks 15/28
Score: 7.6/10
Corruption Perception Index Rank 53/180
Score 52/100
OECD Anti-Bribery Convention Enforcement: Strengthening
Control of Corruption Rank 53%
Political-Legal Environment
Trade Regulations and Legal Considerations
 Employment Law (Ahmad I, 2019)
 No minimum set
 21 consecutive days paid annual leave
 3 Paternity leave for dad
 5 months maternity leave
 Sales Tax (World Tax Rates, 2019)
 VAT (sales tax): 20%
 Trade Policies (Malmström, 2015)
 Removes Italy from the Special 301 Watch List.
 The top 5 U.S. import suppliers from the European Union countries for 2018 includes Italy
 Import duties into EU countries are subject to import tariffs
 The United States is currently the largest market for Italian exports outside the EU. EU exports to the US support 430 000 jobs here
 Many Italian exports to the United States face very high import tariffs
Political-Legal Environment: Observation Deck
Business Observations
 There has been bribery in Italy since there isn't a lot being done to
control or enforce this
 Working on getting better control of corruption in the government
 5-10% of Italians said they paid a bribe when come in contact with
public service
 Economic-Infrastructural Environment
Economic Measures
Interest Rates (Central Intelligence Agency,
2019)
Unemployment (Central Intelligence Agency,
2019)
Inflation (Central Intelligence Agency, 2019)
GDP real growth rate (Central Intelligence
Agency, 2019)
Exchange Rates (UNCTADstat, 2019)
Exchange Rate Regime (Central Intelligence
Agency, 2019)
GDP (Central Intelligence Agency, 2019)
Labor Force (Central Intelligence Agency,
2019)
Major Industries (Central Intelligence Agency,
2019)
FDI Rates (UNCTADstat, 2019)
Trade
4.75% Major Trading Partners Exports: US, China, Switzerland, Russia, Turkey
Imports: China, US, Russia, Switzerland, Turkey
10.2%
Major Imports/Exports Exports:
Agricultural products 8.2
1.3% (2017 est.) Fuels and mining 6.3
Manufactures 81.8
$2.317 trillion (2017 est.)
Commodities: engineering products, textiles and clothing, production
machinery, motor vehicles, transport equipment, chemicals, foodstuffs;
0.885 (2017 est.) beverages and tobacco; minerals, nonferrous metals
Imports:
Agricultural products 8.8
Free Floating
Fuels and mining 19.1
Manufactures 67.4
Commodities: engineering products, chemicals, transport equipment,
48.6% energy products, minerals, nonferrous metals, textiles and clothing, food,
beverages and tobacco
25.94 million (2017 est.)
Regional Trade Agreements and Member Countries EU Treaty, EU(all of these start with EU): Albania, Algeria, Andorra,
Armenia, Bosnia and Herzegovina, Cameroon, Canada, Cariforum States
tourism, machinery, iron and steel, EPA, Central America, Chile, Columbia and Peru, Cote d’lvorie, Eastern
chemicals, food processing, textiles, and Southern Africa States Interim EPA, Egypt, Faroe Islands Georgia,
motor vehicles, clothing, footwear, Ghana, Iceland, Israel, Japan, Jordan, Korea Republic of, Lebanon, Mexico,
ceramics Moldova Republic of, Montenegro, Morocco, North Macedonia, Norway,
Overseas countries and trade territories (OCT), Palestinian Authority, Papua
New Guinea/Fiji, SADC, Serbia, San Marino, Serbia, South Africa,
30,903,528.70 million (Inflow 2018) Switzerland-Liechtenstein, Syria, Tunisia, Turkey, Ukraine, EEA
Economic-Infrastructural Environment
Physical Infrastructure:

Major Airports/Seaports Airports: Rome Fiumicino Airport, Milan

Malpensa Airport, Venice Marco Polo Airport,
Bergamo Airport, and Sicily Catania Airport

Seaports: Augusta, Cagliari, Genoa,

Livorno, Taranto, Trieste, Venice

Railway Stations (Government websites)

Illustration below

Internet Users (Central Intelligence Agency, total: 38,025,661

2019) percent of population: 61.3% (July 2016
est.)

Mobile Providers (txtNation, 2019) TIM (Telecom Italia), Vodafone

Italy (Vodafone), Wind (Orascom Telecom),
3 (Hutchison Whampoa)

Logistics Performance Index Rating (The

World Bank, 2019)
Rank: 19
Score: 3.74
Economic-Infrastructural Environment:
Observation Deck
Business Observations
 The inflation rate for is relatively low in comparison to other countries
such as the United States
 Italy is in an excellent position for shipping and distribution.
 Italy largest industry in is tourism
 Interest rates have fluctuated over the years
Final Recommendations
Market Entry Strategies

Cultural Awareness
References
Ahmad I, C. D. (2019, January). Wage Indicator. Retrieved from Italy Decent Work Check 2019: https://wageindicator.org/documents/decentworkcheck/europe/italy-
english.pdf
Central Intelligence Agency. (2019). The world factbook: Italy. Retrieved https://www.cia.gov/library/publications/the-world-factbook/geos/it.html
Hofstede, G. (2019). Italy - Geert Hofstede. Geert-hofstede.com. Retrieved from http://geerthofstede.com/italy.html
Italy - Italian language, culture, customs and etiquette. (2019). Commisceo-Global. Retrieved from http://www.commisceo-global.com/country-guides/italy-guide
Malmström, C. (2015, June 22). Transatlantic Trade and Investment Partnership. Retrieved from http://trade.ec.europa.eu/doclib/docs/2015/june/tradoc_153542.pdf
seat61.com. (2019). Retrieved from How to travel by train fromLondon to Italy: https://www.seat61.com/Italy.htm#top
The World Bank. (2018). Retrieved from The World Bank: https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD?locations=IT
Transparency International. (2019). Corruption by country/territory: Italy. Retrieved from http://www.transparency.org/country#ITA
txtNation. (2019). Retrieved from All countries - List of mobile operators by country (slow loading): https://clients.txtnation.com/hc/en-us/articles/218714228

UNCTADstat. (2019, July 11). Retrieved from United Nations Conference on Trade and Development:
https://unctadstat.unctad.org/CountryProfile/GeneralProfile/en-GB/380/index.htm
World Atlas. (2019). Italy. Retrieved from https://www.worldatlas.com/webimage/countrys/europe/italy/itland.htm#page
World Trade Organization Country Profile Italy. (2017). Retrieved from http://stat.wto.org/CountryProfiles/E28_E.htm