Tuesday, February 26, 2019

Italy – Research Paper

Geographic completelyy, Italy is comprised of a peninsula that ext closing curtains into the Mediterranean Sea, as well as twain broad islands. The yield of Italy has been depicted as a boot in umteen mere(a) machi dismissoons and drawings for divisions. The surface ambit c all e genuinelywheres e figureuallywhere 116,000 squ be miles, making it approximately the combined size of Florida and Georgia. Killinger, 2002) Italy is a democratic republic that has a authorized population of around 60 jillion people, making it the twenty-third or so populous orbit in the world. Italy is a re move overing out ageth of the North Atlantic Treaty organic law (NATO), the Group of Six, which later became the G8, and the European fragmentisenership. (Italy, 2010) Italians argon earlier roman print Catholic and be required to deem fourteen geezerhood of schematic education.This has lead to a 98 sh be literacy consecrate among the population that notwithstanding(pre nominal) has a produce rate of 0. 02 part per category, which is cardinal of the imprintest offshoot pass judgment in the world. Killinger, 2002) After the decline of the Roman Empire, it took what is at once Italy over fourteen centuries to become unified and drive come in unconnected rule. The plead of Italy was formed fol down in the mouthing the Italian unification movement, known as Risorgimento. Italy installed their fore somewhat Parliament and decl atomic number 18d the Kingdom of Italy in 1861. (Killinger, 2002) In 1922, Benito Mussolini created the fore roughly fascistic regime in history. Mussolini later established the Lateran Pact of 1929 with Pope Pius XI, which recognize the Catholic religion as the sole religion of the state and the Vati mickle as an independent state.Italy entered cosmea scrape II in October of 1940 by attack Greece from Albania. In December of the same year, the victorious Greeks invaded Albania. Their advance was only when stop by German uphold. In North Africa the Italians were handed multiple defeats by the British and again had to be rescued by the Germans. In July of 1943, American and British forces landed in Sicily. Fifteen days later Mussolini was arrested and index piece was returned the parliament and the king. In April of 1946, Mussolini attempted escape, and was caught, shot, and hung in Milan.A few days later, the German army corps in Italy surrendered to allies. (Hearder, 1990) At the end of World War II, a vote by the people concluded that the kingdom of Italy would be replaced by the Republic of Italy. In 1948, a new constitution give the President of the Republic the powers of the chief of state while the head of politics was a prime minister with the title of President of the Council of Ministers. A intact court holds the supreme judicial power in Italy, while a lower and upper ho drill were set up and were given the legislative power. (Killinger, 2002)After World War II, Italy ent ered a period known as the stinting Miracle, which was driven by multiple industries and firms that contri nonwithstandinged to the crossingion of cars. These embarrassd the steel, rubber, and oil industries. (Amyot, 2004) petroleum was discovered in the South, in the Northern Po Valley, and in Sicily in 1949. Natural gas was shew the following year. (Hearder, 1990) The Marshall Plan overly sent much than $1. 2 billion from the fall in States to Italy for reconstruction. The loyal exploitation that Italy experienced after World War II helped it become a study player in the line of buy the farm world.Italys Quality of deportment Index was eighth in the world in 2005 (the United States was class-conscious thirteenth) and was be as the eighteenth or so developed pastoral in the world. (Members of the, 2010) Some study orthogonal(a) companies establish in Italy be Versace, Gucci, and Armani in the trend exertion, Pirelli automobile tires, Beretta firearms, and ca r manufacturers Fiat, Alfa Romero, Maserati, Ferrari, and Lamborghini. In total the automobile perseverance contri un slightes 8. 5 portionage of Italys gross municipal product. Italy is in addition the worlds leash producer and exporter of grapes, artichokes, and kiwis, and produces about a fifth of the worlds wine.Italy is in like manner the fourth too largest tourism acquiting body politic in the world and the fifth near visited country. ( hand overnce of Italy, 2010) Italy is currently said to be in a recession, with industrial output dropping 6. 6 per centum in the last year. The gag rule of factories has been announced by Fiat in the wake of falling car sales. Italy is referred to as the sick man of Europe due to constitution-making instability, wish of infrastructure discipline and scotch stagnation. The average annual rate of maturement in Italy is 1. 23 shargon comp ard to the 2. 28 pct average gain rate in the EU over the last ten geezerhood.In Janua ry of this year unemployment hit 8. 6 per centum yet it is predicated that Italy pull up s tugsing pull out of its recession by the end of 2010. (Economy of Italy, 2010) Culture Values and Norms Since World War II, Italian society has profoundly changed, with a significant equal on daily keep. unrivaled of the main elements of change is the more conspicuous role women play in society outside the basis, much(prenominal) as increased participation in exalteder education and non-homogeneous professions. One aspect of this changed role is that Italy records one of the last(a) average verse of children per cleaning lady in the world, as well as what of all term of the lowest ancestry and fertility grade. Brittanica Online Encyclopedia) For Italian families, popular daily leisure activities overwhelm reflexion television, listening to the radio, reading newspapers, and going to movies. Italians atomic number 18 as well known for their warmth of sports, roundthing t hat can be traced back to the ancient Gladiatorial games. Sport is an authoritative part of many Italian festivities like Palio and the Gondola race in Venice. Popular sports admit football, cycling, and auto racing. (The Culture of Italy) Italians are very cheery with their family relations, friendships, and health status, while their economical status and their work positions are little satisfactory.This is e exceptionally the case in southerly Italy, where on that point are fewer job opportunities and where unemployment is luxuriously. (Brittanica Online Encyclopedia) Though the popularity of home entertainment has grown, the use of public spaces stay grand. Young Italians meet friends on a daily basis, lots in the cities piazzas in the in snipings, making frequent trips to bars, cinemas, pizzerias, and discos. Coastal areas are popular destinations in the summer. The automobile retains a wholesome hold on daily bearing as well. Ownership aims are high, and many c ities and towns suffer punishing congestion and pollution as a gist. Brittanica Online Encyclopedia) Regional life in Italy is typified by a diversity of customs and a heavy(p) variety of festivals, regular(a) up if it is their appeal to the tourer industry and to television that helps keep them alive. The majority of ghostly festivals are dedicated to the Madonna or to several(predicate) saints of the Roman Catholic faith. The most nonable Carnival celebrations are held in the cities of Viareggio and Venice, where in 1992 they were financed for the first snip by major sponsors. Italys strong agricultural tradition gives rise to a multitude of festivals celebrating the harvest, food, country, and seafaring pursuits.These festivals reflect the traditional activities of the area in which they are held. (Brittanica Online Encyclopedia) Language The formalized wording of Italy is Italian, a descendent of Tuscan dialect and a direct descendant of Latin. When Italy was unifi ed in 1861, the Italian language existed mainly as a literary language and almost all(prenominal) region had its own dialect. metreizing the language was an important gait in unifying Italians, and the standardized language was based on the Florentine dialect mouth in most of Tuscany. The Languages Spoken in Italy) The largest concourse of non-Italian speakers includes those who speak Sardinian, a Romance language, which retains many pre-Latin words. Some of the new(prenominal) languages spoken are German, French, and Slovene. (The Languages Spoken in Italy) Religion 90 percent of Italys population is Roman Catholic. The remainder of the population is comprised mostly of Jews, a coherent with some Muslims and Orthodox and Eastern Rite Catholics. Super ingrained beliefs are based in the Catholic Church and mixed with older beliefs stretching back to antiquity.In Sicily, for example, Arabic and Greek bows arrive mixed with popular Spanish beliefs and been incorporated into Cat holicism. Thus, thither are beliefs in the Evil Eye, charms, spells, messages through dreams, and discordant otherwise types of omens. People believe witches hasten powers and in the existence of antiwitches. many a(prenominal) of these beliefs have yielded to the rationalism of the modern age. Others, however, exist below the surface. (Culture of Italy) Italy is filled with over 2000 age worth of sanctum sanctorum places. Rome and the Vatican City alone have thousands of shrines, relics, and churches.There are relics of Saint Peter and other popes. Various relics of many saints, places sanctum to Saint Francis of Assisi, shrines, places where the Virgin Mary is reputed to have appeared, and sites of numerous miracles are found across the country. Similarly, notionual ceremonies are frequent. There are the usual holy days of the Roman Catholic ChurchChristmas, Easter, Pentecost, the Immaculate Conception, and others. In addition, there are local saints and appearances by the Pope. The sanctification of new saints, various b slightings, personal, family, and regional paste days, and daily and weekly masses are observed.There are in addition various novenas, rosary rituals, sodalities, mens and womens clubs, and other religious or quasireligious activities. (Culture of Italy) Education Education in Italy is free and compulsory for eight years for children in the midst of the ages of 6 and 14. Primary school lasts 5 years and petty(a) education (Scuole medie) is further divided in two stages Medie Inferiori, which correspond to the sum school grades and lasts for 3 years, and Medie Superiori, which correspond to the secondary school level and lasts another(prenominal) 5 years.Every tier involves an exam at the end of the final year. alternative schools are of different types and allow students to choose alternative carefulnesser paths depending on their interests and aptitude. These include the Liceo, the Istituto Tecnico (technical institute) and the Istituto Professionale (professional institute). The Liceo includes secondary schools oriented towards the study of the arts and sciences. TheLicei are again divided into four types Liceo Classico, which offers Latin, Ancient Greek, Italian, History, and Philosophy as its most important put forwards Liceo Scientifico, where the emphasis is on scientific and mathematical topics Liceo Linguistico, which focuses on languages and Liceo Artistico, which is oriented toward the arts. The university scheme in Italy is similar to that of the United Kingdom, where students concentrate on one subject throughout their degree. Courses consist of the Laurea (roughly equivalent to a bachelors degree) and the Laurea Specialistica (roughly equivalent to a masters degree).There are 41 state universities and 15 other universities, colleges, and higher learning institutes. These include the University of Bologna (the oldest in Italy, founded in the 11th century), and the University of Rome, whic h is the countrys largest. (The Education System in Italy) Social Structure The Italian Institute of Statistics assesses the class system using 6 different categories. The first is the bourgeoisie, which includes entrepreneurs employing a minimum of 6 people, free-lance(a) professionals, and managers. This category accounts for 10 percent of the working population.The white collar affection class covers employees engaged in non-manual jobs and fathers up 17 percent of the working population. The urban petit bourgeoisie comprises 14 percent of the working population, defined as small entrepreneurs with a maximum of 6 employees, shopkeepers, and self-employed artisans. The rural petit bourgeoisie, at 10 percent, own and operate small enterprises in the uncomplicated sectors of agri destination, forestry, hunting, and fishing. The urban working class is the 37 percent of the workforce who engage in manual labor. Finally, the rural working class, at 9 percent, are employees of the p rimary sector.This class break dump, in identifying two categories each of the working and entrepreneurial classes, is considered to be a more precise method of class division, and has been utilize since the mid-1980s. (Italian destitution and Wealth) Despite being a wealthy country, Italy suffers from serious inequality in the distri aloneion of wealth and re put onds. These dramatic statistics stand out in 1998, 11. 8 percent of families lived in poverty. The figure was even higher at the end of the 1980s, when families sustentation in poverty re indicateed 14 percent of the population. The ancestry between northernmost and south was very clear, with over 5 percent of impoverished families reenforcement in southern regions. The gap between the well-heeled north and the impoverished south continues to increase, as does the depth of poverty itself. Of those classified advertisement as poor, elderly people living on a simple state pension make up 53 percent of households liv ing in poverty. Their numbers, however, are steadily decreasing, to be overinterpreted by the working poor. This phenomenon, which looks belike to become a permanent feature of Italian society, affects couples with one or more children, where only one parent works, is to a lower place 40 years old, and has few qualifications and, thus, low earning power. Italian Poverty and Wealth) As a result of Italys generous welfare state, the heavy(p) majority of poor families do not live in extremes of squalor or deprivation. Essential needs provided by the state include basic health care and education, clean peeing supplies, and housing. Moreover, extensive family networks help those living in poverty to face less isolated and are some successions a source of monetary help. However, it is highly difficult for families in poverty to improve their circumstances, and over 70 percent of households classified as poor in 1994 remained poor 2 years later. Italian Poverty and Wealth) Necessity often forces individuals in poverty to take back low- compensateing and unsafe jobs in the internal miserliness, where they are subject to threats and blackmail. In urban areas of the south, the young generation dominates it very difficult to obtain work, and poverty drives some of them into the arms of organized wickedness. Migrations to the north or leaving Italy altogether soundless remain representations out for many. firearm poverty is less transparent in the wealthy north, it does exist.In particular, young couples with 2 or more children who struggle to meet the high cost of living on low salaries find themselves caught in the poverty trap. (Italian Poverty and Wealth) Economy Italy has a diversified industrial parsimony with roughly the same total and per capita output as France and the UK. The deliverance is split between the developed industrial belt in the north and a less-developed, agricultural region in the south. According to nominal GDP calculations, Ital y was ranked as the seventh largest providence in the world in 2006, behind the United States, Japan, Germany, China, UK, and France, and the fourth largest in Europe. The Economy of Italy) Italys major exports are precision railroad carry, drive vehicles, chemicals and electric goods, but the countrys more famous exports are food, clothing, and luxury vehicles. With over 37 million tourists a year, Italy is in any case ranked as the fourth major tourist destination in the world. (The Economy of Italy) close to raw materials needed by industry and more than 75 percent of energy requirements are imported. Despite some short-term reforms aimed at improving competitiveness and long-term growth, the economy experienced low growth in 2006, and unemployment remained at a high level. The Economy of Italy) The currency of Italy is the Euro. governance Italy has a bicameral parliament consisting of a Chamber of Deputies and a Senate, a separate judiciary, and an executive branch compo sed of a Council of Ministers headed by the blossom Minister. (The Government in Italy) The President of the Italian Republic heads the armed forces and has powers to interdict legislation, disband parliament and call elections. He is elected for seven years by the parliament sitting jointly with a small number of regional delegates. The president nominates the prime minister, who proposes the other ministers.The Council of Ministers must retain the support of both houses. (The Government in Italy) The houses of parliament are popularly and without time lag elected through a complex electoral system (latest amendment in 2005), which combines proportional representation with a majority prize for the largest coalition. All Italian citizens, who are older than 18, can vote. (The Government in Italy) Former communistic Party share, Giorgio Napolitano, is Italys 11th President and Romano Prodi, an economist and former academic, is currently immemorial Minister. Economy Current Sta tistics After the end of World War II, Italy was left(p) a ravaged and broken country.Struggling both economically and culturally, a culture that was once dominated by farming now developed into cities. Italy has the worlds sixth (7th including theEuropean marriage ceremony) highest exports,that of US $546,900,000,000 (est. ) in 2008. Italy, also, is the worlds fifth largest industrial goods producer with a US $381 billion output in 2008. (CIA World point declare) Italy has a nominal gross guinea pig product (GDP) of $2. 09 trillion. According to the IMF and World camber Italy, is the tenth ranking country for purchasing power in the world, based on its purchasing power parity (PPP).The Italian economys inflation rate is estimated to be 0. 6 percent. The current transfer rates are euros (Italys official currency) per US dollar 0. 7153 (2009). (CIA World Fact Book) The current interest rate in Italy is 1. 00 percent (2010). (Trading sparings) Despite achievements make sin ce the 1940s, Italy struggles with growth in the current world wide financial crisis, considering their forbidding dependence based on exports and tourism. As the world tightens their belts, Italys pockets feel the difference. When adjusted to the U. S concept, their unemployment rate as of April 2010 is 9. percent, making them the fourth highest in the world, with the U. S. at number one with 9. 8 percent. (Bureau of Labor Statistics) Currency While the infrastructures of the Italian groceryplace and governing have evolved, so has the countrys currency. The professional dominant coin, the Florin, was created in the thirteenth century in Florence. apiece city-state at the time had differing money system and coins. When the country became unified in 1861, theItalian lirabecame the dominate plenty coin. The Italian lira was taken out of circulation in 2002. (World Book Encyclopedia) Though the primary currency now used in Italy is the euro, the city of Campione dItalia uses the Swiss Franc. The European merger countries that currently use the euro as their currency are Italy, Belgium, Germany, Greece, Spain, France, Ireland, Luxembourg, the Netherlands, Austria, Portugal, and Finland. Euro banknote denominations for the euro are 5, 10, 20, 50, 100, 200, and 500. Coin denominations are 1, 2, 5, 10, 20, and 50 cent and 1 and 2 euro. (seeitalia) With a history richly based in the arts, it is no surprise that each coin and bill has been created with a uniquely different design and theme.Designs were created by different artists to depict the works of one of the most influential artists, Raphael. The original coin, the euro 2. 00, set the standard and is a depiction of Dante Alighieri (one of Raphaels works). Despite attempts to be unique, there are standards required of each coin. Each must have twelve stars to represent the twelve countries unified with this currency. Each must also have the year of imprint under overlapping letters RI forRepubblica Italian a (meaning Italian Republic). Below this is a letter R, representing Rome.Trading Policies In the 1950s, Italy helped found the European company (EC). The European Community consists of four components the European Coal Community, the Steel Community, the European Atomic Energy Community, and the European economical Community. Italy was able to strengthen their economy through increased trade with the nations of the European Community. In 1993, Italy and the other European Community countries formed the European Union, which works for both economic and political cooperation among its member nations.The European Community was incorporated into the European Union. (The World Book Encyclopedia) Through trade, preferential trade agreements can be used to piddle strong relationships. Some trade policies can be used to retaliate those who do not abide by multi discipline law. Italys trade policy is the same as that of other members of the European Union. The common (EU) heavy avera ge tariff rate was 1. 3 percent in 2008. However, the (EU) has high or escalating tariffs for agricultural and manufacturing products and its most favored nation (MFN) tariff rule is complex.Non-tariff barriers reflected in (EU) and Italian policies include agricultural and manufacturing subsidies, quotas, import restrictions and bans for some goods and services, securities industry access restrictions in some services sectors, non-transparent and restrictive regulations and standards, and inconsistent regulative and customs administration among (EU) members. (2010 INDEX of ECONOMIC FREEDOM) Trading Partners As most countries do, Italy relies on international trade to help sustain their economy.Italy depends a great deal on imports such as food, machinery, metals, motor vehicles, petroleum, and textile yarns. Italys principal trading partner is Germany. Other leading trading partners include Belgium, France, Spain, Switzerland, the United Kingdom, and the United States. (The Wo rld Book Encyclopedia) Because Italy is such a rough region, farming and cultivation are very difficult. While the majority of exports are chemicals and machinery, Italy is known for such world class luxury brand as Prada, Armani, Versace, Valentine, and Maserati.Trade organisations Italy has often led the way for European economic development and international integration. For example, Italy has a membership in several trade agreements. Under the European Free-Trade Association (EFTA) member states constitute an enlarged whiz grocery store. The European Economic Area (EEA) ex lists (EU) commercial law to the (EFTA) states, thereby providing for the free circulation of goods, services, capital and labor, well-favored aires the right to establish themselves or subsidiaries throughout the (EEA).Other commercially significant international agreements include numerous revenue treaties. ( remote Affairs and internationalist Trade Canada) Italy was admitted to the United Nations in 1955 and is a member and strong supporter of the North Atlantic Treaty system of rules (NATO), the Organization for Economic Cooperation and knowledge (OECD), the familiar Agreement on Tariffs and Trade/World Trade Organization (GATT/WTO), the Organization for security department and Cooperation in Europe (OSCE), and the Council of Europe. (U. S.Department of State) In 2009, Italy was the president of the G8 Summit held in LAquila, Italy. Member of the G8 Summit have come together annually since 1975 to contend and debate important economic issues on the global agenda . The G8 member countries are Italy, Canada, the Russian Federation, France, Germany, Japan, the United Kingdom, and the United States. Dominant Industries Companies Italys considerable post World War II trend toward the industrialization of its nation has changed due to the recent global recession.High unemployment rates exist, and a lack of natural resources has slowed the industrial growth of Italy dramat ically. Three state-holding companies have played a large role in industry ENI (National Hydrocarbon Agency), IRI (Industrial Reconstruction Institute), and EFIM (Agency for Participation and Financing of Manufacturing manufacture). (Encyclopedia of the Nations) The economic point of the world has deeply affected these companies. As of 2001, IRI became dismantled, and ENI sold jeopardize in the company in an attempt to eliminate high debt.Despite economic difficulties, iron and steel, food affect (including olive oil, wine, and cheese), textiles, footwear, and ceramics remain thriving Italian industries. The bulk of industry is concentrated in the northwest, in the Milan-Turin-Genoa industrial triangle. The presidential term has make concerted efforts to attract industry to the underdeveloped southeast. (Encyclopedia of the Nations) Several major successful private companies include the Fiat automobile company, the Olivetti company (office computers and tele colloquys), the Mo ntedison chemical firm, and the Pirelli rubber company. Encyclopedia of the Nations) Italy is home of some of the worlds most popular fashion designers. Black Market Transactions Despite its relatively high standard of living, problems with crime and the existence of a black market exist in Italy. The estimated black market foster is around $111. 05 billion. Unfortunately, these markets are allwhere. Usually these markets target tourists by selling fake designer goods such as Prada, Armani, and Versace. Italy is also a breeding ground for organized crime. callable to high unemployment rates, mobsters have found a cheap workforce in spite of appearance the recently inert.Taking advantage of the economic situation in Italy, the mafia has afflicted it rich using any and all means of crime to turn a profit. It is estimated the mobs joint upset last year at 135 billion euros, topped by trafficking in drugs, people, weapons and pitch-dark worth just under 68 billion euros. Second came phone line interests like public contracts, gambling, forgeries and supplying illegal labor at 25 billion euros, then extortion and loan sharking at 25 billion euros. (Reuters) The Italian mafia is big pedigree, and would possibly be the largest company in Italy if it was one.Unless the Italian government can intervene, huge amounts of revenue go forth continue to be lost due to arms trafficking, drug sales, counterfeit, piracy, Ecstasy, human trafficking, and trash smuggling. Standard Operating Practices Conducting blood in General As a championship manager wishing to conduct billet in Italy or with Italian transmission linees, having a good understanding about how the country conducts credit line can yield many benefits. Demonstrating your understanding of their culture and background information leave alone help you refine your approach and be more appealing to them. fleet time reviewing the company dynamics.Italy has a large portion of small and ordinary coat companies financed primarily by families. As such, the center of influence and ratiocination making typically happens in upper heed, which is likely to be staffed by family members. It is also important to know that the time spent on cultivating a relationship is equally as worthwhile an investment as penetrative the culture. It serves to position you ahead of competitors that may not have done their planning on the nuisances of the Italian business and culture. Italian style should also be noteworthy as it something not taken very lightly. Italians are very fashionable.You allow be judged by your dress code, including accessories and how you carry yourself. Its a first impression and a lasting one. You must look the part to garner the respect you seek and expect. Business dress does vary between industries and formality can go from suits and ties to somewhat less formal attire. Managers tend to be well groomed with tailored quality clothing. In an ever changing business and cultural world, Italians do not have high regard for in-depth long term planning. It is viewed as a waste of time and at most they will commit to very high level plans and leave room for flexibility and growth.Foreign women can do business without great difficulty in Italy. Being a fair sex may even be considered an advantage in some circumstances. Statistically speaking, only 38 percent of Italian women under the age of 65 are in the labor market one of the lowest percentages in Western Europe. fewer Italian women hold managerial positions. The Italians are generally not subdue when interacting with the opposite sex. Flirtation is part of the spirit of life in Italy. Business Entry Strategies Entering the Italian market can be accomplish in two simple steps. The first is planning.You should complete extensive question of the market and develop a thoughtful business plan. Second, leverage the U. S. and Foreign Commercial Service (USFCS) trade events in Italy. The USFCS Service platform facilitates companies testing the Italian market through an inexpensive agent/ distributor dynamic. Participating in the trade events is not only about exposure, but latent sales based on relationships that are seeded. As noted previously, rapport and trusting relationships is a great benefit when doing business in Italy. The trade events can lend themselves to exposing companies to other countries in addition to Italy. http//findarticles. com) Relationships are critically important. From relationships, cooperation can be established for business success. Verbal communication and how articulate you are is much more heavily weighted than pen communication. It is highly beneficial to brush up on your speaking skills for pellucidity and conciseness. Conducting Meetings In Italy, meetings are to be scheduled in writing two or triple weeks in advance and followed up with a yell call to confirm the details. Depending on what region you are in, punctuality relevancy may var y.In northern Italy, punctuality is a virtue and your business associates will likely be on time. You should be early or on time, unless you have a good excuse for tardiness. Whatever materials you have to present should be in print form in both side and Italian. Another cultural influence is how meetings are managed. Meetings are generally informal and the smaller the free radical the less formality exercised. order of businesss tend to be bendable as the meetings are highly inter fighting(a) due to participant engagement, not to mention that there are multiple streams of conversations going on.There may also be changes in audience members or participants throughout the meeting. It is important to pass away meetings with small talk to get to know your Italian peer other you are viewed as being weak. A few safe colloquial topics would be around Italian culture, food, family, movies, wine and art. You should make sure to pay special help to the eldest person at an Italian busi ness function. If you are expecting negotiations to occur, this is another area that differs by region. Northern Italians are more direct and see time as money.They want to get down to business immediately following brief small talk. However, in the southern part of the country, people tend to be more leisu hope and rely on personal relationship development to know who they are doing business with. It is ill-advised to use high pressure sales tactics but you may need to indulge in some haggling over price and delivery. (www. worldbusinessculture. com) You should have a clear understanding of who the authority figures or decision makers are in the company and for the business transaction you are trying to negotiate.You may expect to have some dialogue with stakeholders and influence a affectionate decision, but frequently the decisions are made precedent to the formal meeting with a smaller group of people to hasheesh out the deal. Essentially, in order to be able to influence the group and the outcome, you will need to be present in the pre-meeting to provide perspective. earlier the pre-meeting, the stakeholders would have likely had the information in hand and have had time to review at their leisure, prior to making any decisions in the pre-meeting. It is gratifying to give out business tantalizes while in business meetings, but not in complaisant settings.Many Italians carry two different cards one for business and the other with personal information for less formal relationships. Business cards are exchanged only at the first meeting and should be a hand to hand exchange with the intended recipient. Do not give a business card to the same person more than once. (www. kwintessential. co. uk) You should make sure to pay special attention to the eldest person present at a business function. Business Etiquette Italian culture is inviting and personal, thus when talking, people are up destruction and personal.While respecting someones personal space is preferred in the American culture, in Italy any attempt to create space or distance from the person or people you are talking to is seen as disrespectful and rude. Handshakes are common for both men and women and may also include grasping the arm with the other hand. You will shake reach both coming and departing from your company. As the relationship develops, the greeting may grow to an embrace and air kisses on the both sides of the cheeks. (www. ehow. com) Formal names and titles should be used until you are invited to use first names.Generally in business women will use their maiden names for business and legal affairs, but outside of business they may use their married name or compounding of married and maiden name. (www. ediplomat. com) When talking, maintain eye contact with the person or persons you are speaking with, otherwise you will be perceived as hiding something or being deceptive. (www. ediplomat. com) condemnation Orientation When scheduling meetings, punctual starts are important, but it is understood that situations arise that will need attention and interfere with punctuality.Meetings should be avoided during the month of August, as that is a time of national holidays and many companies will be low on staff. In harm of optimal meeting times, it is best to schedule meetings between 10 11 AM and after 3 pm. (www. ehow. com) You should also make note of time zone differences when making contact by telephone. Italys time is Greenwich fee-tail Time (GMT) +1, which is equivalent to five hours ahead of Eastern Standard Time (EST). Gifts/Incentives You should follow some general guidelines for afford giving. Refrain from giving a business gift until you receive one first.Gifts are judge for kind events, especially to express your thank after you have been invited to a dinner party party at a home. Gifts are usually opened at the time they are given and received. Your gift should be a reputable brand name that is at the same time small and not obviously expensive. Gifts of alcohol or crafts from your own country are often good choices. If you want to give a gift to someone who has been specially helpful around the office, good choices include fine pens, a inclose print/picture, silver key ranges, or calculators.Regardless, make sure your gift is a reputable name-brand Secretaries generally appreciate a gift of flowers or chocolates. If you are invited to a home, bring gift-wrapped chocolates or flowers. Never give an even number of flowers. Do not give chrysanthemums they are gratifying only for funerals. Moreover, red roses are reserved for romantic occasions. If you are invited to a home and decide to give wine, buy a good vintage. Bring one or two (maximum) bottles. A good wine or spirit from your country could be an excellent choice as Italians are arouse in learning about other countries.If you bring a present from your home country, be ready with a short description of what it is and why you have chosen it e. g. it is from your home town and has an interesting and unique way of being made, etc. If you are staying with a family, good gift selections can include coffee table books about your home country, or anything that reflects the interests of your hosts and is representative of your country. holiday cards can be appropriate, particularly as an expression of thanks to your business associates. Ensure that your cards are mailed in time to be received a week before Christmas.Card sending is not very common in Italy, so your card will be received with interest. There are some gifts to avoid giving to Italian business associates. These include gifts showcasing your companys logo, brooches and handkerchiefs (these items are associated with funerals), gifts wrapped in black and favourable paper (traditionally, these are the colors of mourning) or purple (this color is considered a symbol of bad luck), and knives or any other type of perspicacious objectsuch items may be interpreted to suggest the severing of a friendship or other close bond. www. 1worldglobalgifts. com) Legal Issues FITA provides this chart to explain the legal forms of companies in Italy Form Number of borderline and/or maximum capital obligation enrollment fee Release of partners/shareholders financial documents Societa a responsabilita No minimum Minimum 10,000 , entirely subscribed Liability is special(a)About 100 No limitata (SRL) is a nb 1 partner for a sole and released up to 3/10 at the to the amount snobby express Company. proprietorship. creation. contributed. Societa per azioni (SpA) Minimum 2 shareholders. Minimum 100,000 , totally subscribedLiability is limitedAbout 1,000 is a Public restrain and released up to 3/10 at the to the amount Company. creation. Their liability is limited contributed. to the amount contributed. Societa in nome Colletivo Partners liability Lower expenses (SNC) is a general Minimum 2 partners No minimum capi tal. is joint and compared with Private No partnership. several. Limited Company Societa in Accomanditari Two types of partners No minimum capital. Liability of active Lower expenses as No Semplice(SAS) is a active partners and partners is compared to a Private limited partnership. sleeping partners. unlimited Limited Company Societa Cooperativa (SC) Minimum 9 partners No minimum capital. Liability is limitedLower expenses as No is a co-operative company or unlimited compared to a Private depending on the Limited Company status. According to the FITA website, Italy encourages the development of small and medium sized businesses and promotes jobs creation.Companies receive incentives through grants and tax exemptions if they are working in sectors of decline. Registration and licensing status must be drawn up in a deed by the solicitor. They must be introduced within 30 days with the register of companies, then with the Commercial Court of the province wher e the company will be located. A registration with the local Chamber of Commerce is also required, as well as a notice in the official journal of advertisements. These formalities take about 4 weeks. (www. fita. org) SWOT abstract Strengths Weaknesses Tourism Slow Developing Capitalist Economy cotton wool good Declining Birth Rate Textiles Industry High Debt aim European Union Member fiscal Budget Deficit Un versatile Workers Opportunities Threats Jobs Yielded From Tourism Unemployment Jobs Yielded From like Poverty High Investment Flow Potential Potentially impossible Debt High Export Country STRENGTHS Tourism Rome, Venice, and Florence are the top three destinations for tourism in Italy. Other major tourist locations include Turin, Milan, Naples, Padua, Bologna, Perugia, Genoa, Sicily, Sardinia, Salento, and quin Terre. Two factors in each of these locations are history and geography. The Roman Empire, core ages, and renaissance have left many cult ural artifacts for the Italian tourist industry to use. Many northern cities are also able to use the Alps as an attraction for winter sports, while coastal southern cities have the Mediterranean Sea to draw tourists looking for sun.Italy is home to cardinal three UNESCO World Heritage Sites, more than any other country, including many entire cities such as Verona, Siena, Vicenza, Ferrara, San Gimignano, and Urbino. Ravenna hosts an unprecedented eight different internationally recognized sites. Italy is a true open-air museum with 65 percent of the worlds artworks and historical monuments. (Korea Times) Cotton Commodity Cotton is a the eccentric grown to make yarn, thread and a textile called cotton that is the most widely used natural fiber cloth in the world. Cottons long term growth potential is moderately favorable due to low scores on short supply and veer products. (Wiki Wealth) Textile Industry The Italian textile and clothing industry is unique, lively, innovative, a nd leader in the world.Its transmutation ability represents its main and most lasting competitive advantage. The mission of the Italian fashion system lies in offering original and very distinctive products, which meanwhile answer to consumers taste and meet his needs. This also implies a continuous improvement in technical performances of fibers, yarns, fabrics, and finishing. The success of the whole chain from the first processes on fibers to fabrics, finishing operations, and final products for the market is favored by the interaction of a sophisticated manufacturing network, where the strength of each element is at the same time a condition and a function of the energy of the whole system.This dynamic combination of productive, creative, and managing activities involves about 67,500 industrial companies with large, medium, and even very small scale operations. This unique mix still turns out to be the main point of strength of Italian T/C industry, whose about 540,000 empl oyees contribute to roughly 10 percent of the manufacturing sectors added value. The strong export trend of the T/C industry is shown by the turnover share totalized abroad, amounting to 62 percent of total sales. The significant flow of exports ensures a inappropriate trade surplus of about 12 billion Euros, which compensate, to a large extent, the countrys famine in energy and agriculture.Besides the value which can be measured in figures, Italian fashion, strongly founded on T/C, has enormously contributed to the definition of the ideas of Italian good taste and life quality, with positive do on Italian products all over the world (Slide Share) European Union Member The European Union (EU) is a political and economic community of twenty-seven member states, located primarily in Europe. It was established in 1993 by the Treaty of Maastricht, adding new areas of policy to the existing European Community founded in 1957. With almost 500million citizens the EU is generating an est imated 33 percent share of the worlds nominal gross domestic product (US$16. 6 trillion) in 2007.The EU comprises a single market created by a system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital. Fifteen member states have take a common currency, the euro. Passport control between many members has been abolished under the Schengen Agreement. The EU maintains common trade and agricultural policies, and a regional development policy. It has developed a role in foreign and security policies, and in justice and home affairs. The EU represents its members in the World Trade Organization and attends at G8 summits and at the United Nations. Twenty-one EU countries are members of NATO. The military operation of the EU involves a hybrid of government and supranational.Particularly the need for moderation of the single market has prompted the establishment of bodies capable of making decisions without the consent of na tional governments. The take up distribution of competences between member states and Union is explicitly defined in the proposed Treaty of Lisbon. Important institutions and bodies of the EU include the European guidance, the Council of the European Union, the European Court of Justice, the European Central situate, and the European Parliament which citizens elect every five years. (EU School) WEAKNESSES Slow Developing Capitalist Economy The Italian economy has changed dramatically since the end of World War II.From an agriculturally based economy, it has developed into an industrial state ranked as the worlds fifth-largest industrial economy. Italy belongs to the Group of Eight (G-8) change nations it is a member of the European Union and the Organization for Economic Cooperation and Development (OECD). Italy has few natural resources. With much of the land unsuited for farming, it is a net food importer. There are no substantial deposits of iron, coal, or oil. be natural g as reserves, mainly in the Po Valley and onshore Adriatic, have grown in recent years and constitute the countrys most important mineral resource. Most raw materials needed for manufacturing and more than 80 percent of the countrys energy sources are imported.Italys economic strength is in the processing and the manufacturing of goods, primarily in small and medium-sized family-owned firms. Its major industries are precision machinery, motor vehicles, chemicals, pharmaceuticals, electric goods, and fashion and clothing. Italy continues to fence with budget shortfalls and high public debt2. 6 percent and 105. 9 percent of GDP for 2008, respectively. Italy joined the European monetary Union in 1998 by signing the Stability and Growth Pact, and as a condition of this Euro zone membership, Italy must keep its budget deficit beneath a 3 percent ceiling. The Italian Government has found it difficult to bring the budget deficit down to a level that would allow a rapid decrease of that d ebt.The worsening of the economic situation is expected to jeopardize this effort. The deficit is expected to grow well to a higher place the 3 percent ceiling in 2009 and 2010. Italys economic growth averaged only 0. 8 percent in the period 2001-2008 2008 GDP decreased 1. 0 percent, largely due to the global economic crisis and its refer on exports and domestic pack. GDP is expected to contract further, with a huge decrease in 2009 (ranging from 2 percent to 3 percent) as the Euro zone and world economies slow. Italys adjacent trade ties are with the other countries of the European Union, with whom it conducts about 60. 1 percent of its total trade (2007 data).Italys largest EU trade partners, in order of market share, are Germany (12. 9 percent), France (11. 4 percent), and the United Kingdom (5. 8 percent). Italy continues to grapple with the effects of globalization, where indisputable countries (notably China) have eroded the Italian lower-end industrial product sector. Th e Italian economy is also affected by a large surreptitious economyworth some 27 percent of Italys GDP. This fruit is not subject, of course, to taxation and thus remains a source of lost revenue to the local and central government. (Travel Docs) Declining Birth Rate Italy, as we all know, is the world center of the Catholic Church.Strangely, in spite of its planted Catholic culture and tradition, it has today changed into a nation having the second lowest birth rates in Europe, next only to Spain. At 1. 2 per woman that means one child per woman, according to Global Agenda Magazine. It was brought out in an article in April 2004 in the Sunday telegraphy that Swedens Birth rate was close to Italys though 50 percent higher. In order to arrest this situation, the Italian Government started offering 1,000 Euros to every woman who had a second child. Other traditionally Catholic nations, like Ireland and France, have the highest and second highest birth rates in Europe.Even Sweden h as a 50 percent higher birth rate in comparison to Italy. These increased numbers may be due to better government-controlled child and health care facilities as well as incentives for families that have more children. (Trans4Mind) High Debt Level Italys public debt, the highest among the 27 nations of the European Union, rose last year as the economy contracted the most in more than 30 years, the countrys central bank said today. The debt climbed to 105. 8 percent of gross domestic product from 103. 5 in December 2007, the Bank of Italy said in a faxed statement. The debt reached 108. 1 percent of GDP in January 2009, the central bank also said. Italy will contract 2. percent in 2009 after shrinking 1 percent last year, Bank of Italys deputy director general, Ignacio Viscous, said on March 4. The budget deficit rose in 2008 to 2. 7 percent of GDP, the Rome-based national statistics office, Istat, said on March2. This years budget deficit will widen to 3. 7 percent of GDP and overal l debt will soar to 110. 5 percent of output from 105. 9 percent, the government forecast on Feb. 9. Italy should raise the hideaway age for women as a way to stop pension cost from increasing, European Union finance ministers said on March 10. As pensioners become a larger part of the population, falling tax avail and increased government spending threaten to swell the overall debt. (Italian Economy) Fiscal Budget Deficit Italys government cut its economic growth forecasts for this year and next, citing a more contained recovery in exports than in other European nations, and also raised its debt projections. Gross domestic product will rise 1 percent in 2010 and 1. 5 percent in 2011, down respectively from the 1. 1 percent and 2 percent predicted in January, according to the forecast included in a document affix on the Finance Ministrys website today. The government raised its debt forecast to 118. 4 percent of GDP this year and 118. 7 percent next year, from a previous predict ion of 116. 9 percent and 116. 5 percent, respectively. This month, the European Commission forecast Italian debt of 118. percent of GDP this year and 118. 9 percent in 2011. (Italian Economy) Unskilled Workforce Unemployment is a regional issue in Italylow in the north, high in the south. The overall national rate is at its lowest level since 1992. Chronic problems of inadequate infrastructure, corruption, and organized crime act as disincentives to investment and job creation in the south. A significant underground economy absorbs substantial numbers of people, but they work for low contend and without standard social benefits and protections. Women and youth have significantly higher rates of unemployment than do men. Unions cite to represent 40 percent of the work force.Most Italian unions are grouped in four major confederations the General Italian coalition of Labor (CGIL), the Italian Confederation of Workers Unions (CISL), the Italian Union of Labor (UIL), and the Gener al Union of Labor (UGL), which together claim 35 percent of the work force. These confederations formerly were associated with important political parties or currents, but they have evolved into fully autonomous, professional bodies. The CGIL, CISL, and UIL are affiliated with the International Confederation of Free Trade Unions (ICFTU) and customarily coordinate their positions before confronting management or lobbying the government. The confederations have had an important consultative role on national social and economic issues. (Travel Docs) OPPORTUNITIES Jobs Yielded from Tourism With more than 43. 7 million tourists a year, Italy ranks fourth among tourists destination in the world.People mainly come to Italy for its rich art, cuisine, history, fashion and culture, its beautiful coastline and beaches, its mountains, and priceless ancient monuments, especially those from the Greek civilization and Roman civilization. Tourism is one of Italys fastest growing and most profitabl e industrial sectors, with an estimated revenue of $42. 7 billion. (Tourism In Italy) Jobs Yielded from Cotton Cotton is a the fiber grown to make yarn, thread and a textile called cotton that is the most widely used natural fiber cloth in the world. Cottons long term growth potential is moderately favorable due to low scores on short supply and substitute products. (Cotton Commodity)High Investment Flow Potential Italy welcomes and encourages foreign direct investment, but the government of Prime Minister Silvio Berlusconi that took office in April 2008 has taken only balmy steps toward structural economic reform that could increase investment, business creation, production and employment. Economic policymakers have been mainly preoccupied addressing the effects on Italy of the severe global economic downturn. The GOI has focused on measures to stimulate aggregate demand and demand for products of sensitive sectors such as autos and household durable goods. In early 2009 the g overnment adopted additional modest fiscal incentives for companies, foreign ones included, investing in research and some new equipment, and temporarily eliminated a small surtax on firms. As an EU Member State, Italy is skirt by EU treaties and legislation, some of which have an impact on business investment.Under the EU treatys right of establishment, Italy is generally obliged to provide national treatment to foreign investors established in Italy or in another EU member state. Exceptions include access to government subsidies for the ingest industry, capital requirements for banks domiciled in non-EU member countries, and restrictions on non-EU-based airlines operating(a) domestic routes. Italy also has investment restrictions in the shipping sector. EU and Italian anti-trust laws give EU and Italian authorities the right to review mergers and acquisitions over a certain financial threshold. The government may block mergers involving foreign firms for reasons essential to the national economy or if the home government of the foreign firm applies racist measures against Italian firms.Foreign investors in the defense or aircraft manufacturing sectors are likely to retrieve an opaque process and resistance from the many ministries charged with approving foreign acquisitions of existing assets or firms, most of which are controlled to some degree by the para-statal defense conglomerate Finmeccanica. The EU in 2009 ordered the GOI to recover from a US investor previously agreed subsidies for electricity. The GOI had provided these subsidies to induce the investor to keep two plants operating in Italy. The fate of the plants is up in the air, pending the GOI finding an acceptable mechanism to make energy available to the investor at a market-comparable price, i. e. , close to the median cost of electricity in other western European countries. (Investment Climate) High Export Country The demand for Italian products is at an all time high.Italy has become kn own for niche products, including fashion eye-wear, specialized machine tools, packaging, stylish furniture, and other products featuring high design. Italy produced 1,579,656 automobiles in 2001, a 9 percent drop from 2000. It also manufactured 42,618 heavy trucks in 2000. The construction industry stands to gain in importance in the early 2000s, as Italys less-developed regions are slated for infrastructure development. (Industry in Italy) THREATS Unemployment Unemployment is a regional issue in Italylow in the north, high in the south. The overall national rate is at its lowest level since 1992. Chronic problems of inadequate infrastructure, corruption, and organized crime act as disincentives to investment and job creation in the south.A significant underground economy absorbs substantial numbers of people, but they work for low wages and without standard social benefits and protections. Women and youth have significantly higher rates of unemployment than do men. Unions claim t o represent 40 percent of the work force. Most Italian unions are grouped in four major confederations the General Italian Confederation of Labor (CGIL), the Italian Confederation of Workers Unions (CISL), the Italian Union of Labor (UIL), and the General Union of Labor (UGL), which together claim 35 percent of the work force. These confederations formerly were associated with important political parties or currents, but they have evolved into fully autonomous, professional bodies.The CGIL, CISL, and UIL are affiliated with the International Confederation of Free Trade Unions (ICFTU) and customarily coordinate their positions before confronting management or lobbying the government. The confederations have had an important consultative role on national social and economic issues. (Travel Docs) Poverty More than one in 25 Italians lived in absolute poverty before the latest recession hit the country as difficulty in debut the labor market made it hard for people to reach an accepta ble living standard. The number of Italians living below the level of absolute poverty reached 2. 4 million in 2007, statistics office Istat said today. Thats equivalent to 4. 1 percent of the population, up from 3. percent in 2006, the Rome-based statistics agency said in a handle today. The absolute poverty threshold is based on a ring of necessary goods and services rather than on average household consumption, as in relative poverty.Italy entered its fourth recession since 2001 in the third billet of last year as the global financial crisis aggravated the effects of waning productivity, prompting companies including Fiat Spa, Italys biggest manufacturer, and Luxottica Group Spa, the worlds largest eyeglasses maker, to cut jobs. Earlier this year, the government gave 1 million of the poorest pensioners and 300,000 of the lowest-paid employees shop cards inspired by the U. S. subsidy program known as food stamps. The position of family members in the labor market is clearly li nk up to whether the family is under the level of absolute poverty, Istat said. The most serious problems arise when no family member is employed or when a worker has retired and has no current or past income from employment 20. 5 percent of people in this situation are in absolute poverty. (Italian Economy) Potentially Insurmountable Debt Fears are mounting that Italy will be the next European country to be hit by the sovereign debt crisis, which has seen Greeces credit rating mown to junk. Markets believe Italy will be the next Euro zone country to see its credit rating downgraded due to its high levels of debt and weak economy.Were that to happen, it would severely impact Italys ability to borrow money and finance its operations. The panic in financial markets started with Greece struggling to repay its creditors due to massive debts, low tax receipts, messy public finances and an ailing economy. (Fears for Italy) Conclusion Global enlargement to Italy should be favorable, especially among companies that can contribute to the countrys already booming tourism industries. Companies that specialize in economies of scale in production of textiles, precision machinery, chemicals, electric goods, food, and clothing could locate production facilities in this country. Jobs provided to unemployed workers would make up for the increased competition with domestic companies.Businesses could enter the Italian market and provide jobs to unemployed workers. This might persuade many younger citizens to turn away from crime and the mafia. These workers could then learn employment skills and earn an income to support their families. Unemployment rates would improve, and the workforce would be much more skilled and have more discretionary income per family. There are many strengths and opportunities to take advantage of, such as Italys membership in the EU, and the potential to create jobs. Although Italy is considered to currently be in a recession, it is not expected to last very much longer. Italy has experienced strong growth throughout various periods of time.Italians still continue to hold fast o their strong cultural values, and business is expected to continue to prosper. If the decision to expand business within Italy is made, the optimal mode of entry would be to enter the country with production facilities of goods that are not overly expensive. Italy has seen a decline in production of expensive luxury items such as the Fiat and various fashion designer items. It would be beneficial to a company entering the host country of Italy to consider the current status of the worldwide economy and Italys unmanageable high debt. It may be preferred to delay entering the Italian market until the temporary recession the country is in passes. Governments ay still block mergers and acquisitions, so a method of entry may be a Greenfield operation, where the company enters the foreign market as a new operation.References Killinger, Charles. (2002). Th e History of Italy. Greenwood Pub Group. Hearder, H. (1990). Italy A Short History. Cambridge, UK Cambridge University Press. Italy. (2010, June 15). Retrieved from http//en. wikipedia. org/wiki/Italy Amyot, G. (2004). Business, The State and Economic Policy The Case of Italy. New York, NY 2004. Members of the EU Italy. (2010, June 15). Retrieved from http//europa. eu/abc/european_countries/eu_members/italy/index_en. htm Ecomony of Italy. (2010, June 15). Retrieved from http//en. wikipedia. org/wiki/Economy_of_Italy

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