Total imports of Italy

From January through September 2017, Italy’s total imports from the United States totaled $13.41 billion. The total value of US exports was $35.7 billion. Italy (https://www.ustradenumbers.com/countries/italy/) The top three imports are as follows: Automobiles are worth $43.5 billion, mineral fuels, including oil, are worth $41.5 billion, and machinery, including computers, are worth $40.9 billion.

Exports in total; $92.4 billion in machinery, $39.4 billion in automobiles, and $27.7 billion in electrical machinery and equipment. Source: http://www.worldstopexports.com/top-10-exports-from-Italy/

The corporate tax rate in Italy is 24%. Source: https://home.kpmg.com/xx/en/home/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html

The GDP of Italy in 2016 was $1849.97 billion. Source: https://tradingeconomics.com/italy/gdp

As of 2016, the GDP per capita income for Italy was recorded as $34283.70 which is about 271% of the world’s average Source: https://tradingeconomics.com/italy/gdp-per-capita

Italian culture is known to be more high-context in general as their perception of messages is more than just mere words. Source: http://fs2.american.edu/zaharna/www/phillips/Phillips/webpages/Cultural.htm

Italy’s average year of schooling for adults, both males and females stands at 7.2 years as at 2000. Source: http://www.nationmaster.com/country-info/profiles/Italy/Education

The population of Italy that is below poverty line stands at 29.9%. Source: https://www.cia.gov/library/publications/the-world-factbook/fields/2046.html

As of 2016, the population growth rate stood at 0.23% for Italy. Source: http://www.indexmundi.com/italy/population_growth_rate.html

Italy’s total life expectance stands at 82.7 years. Males and females have and expectancy of 80.5 and 84.8 years respectively. Source: http://www.worldlifeexpectancy.com/italy-life-expectancy

Retirement is required in Italy and stands at 66.58 and 65.58 years for men and women respectively. Source: https://tradingeconomics.com/italy/retirement-age-men https://tradingeconomics.com/italy/retirement-age-women

Italy’s individual tax rates range from 24% for incomes less than € 15,000 to 43% for incomes over € 75,000. Source: http://taxsummaries.pwc.com/ID/Italy-Individual-Taxes-on-personal-income

Current inflation rate as of October 2017 stands at 1.1%Source: https://tradingeconomics.com/italy/inflation-cpi

Italy’s World Bank ease of doing business rank is number 46.Source: http://www.doingbusiness.org/data/exploreeconomies/italy

Unemployment level as of September 2017 stood at 11.1% Source: https://tradingeconomics.com/italy/unemployment-rate

Cell phone usage per 1000 people in Italy is 1,341.47 people. Source: http://www.nationmaster.com/country-info/profiles/Italy/Media

Internet usage per 1000 people in Italy is 577.91 people. Source: http://www.nationmaster.com/country-info/profiles/Italy/Media

Average vacation days per year in Italy stand at 20 days. Source: http://www.vpcalendar.net/average-vacation-days-by-country.html

Italy’s aveagge number of days for sick leave stands at 180 days. Source: https://www.eurofound.europa.eu/observatories/eurwork/comparative-information/national-contributions/italy/absence-from-work-italy

The Hofstede power distance score is 75 in Italy indicating Italians are uneasy with ambiguous situations in business and other situations. Source: https://www.hofstede-insights.com/country-comparison/italy/

This Hofstede power distance score stands at 50 in Italy showing Italians prefer equality and a decentralized form of government. Source: http://europpconsulting.blogspot.co.ke/p/hofstede.html

The Hofstede individualism score for Italy is 76 meaning this country has an individualistic culture especially in big and rich cities. Source: https://www.hofstede-insights.com/country-comparison/italy/

The Hofstede M/F score for Italy is 70 meaning it is very masculine centered society which is driven to gain success. Source: https://www.hofstede-insights.com/country-comparison/italy/

The Hofstede LT/ST score stands at 61 indicating the pragmatic approach of the Italian society. Source: https://www.hofstede-insights.com/country-comparison/italy/

Part 2

Italy’s Gross Domestic Product stood at 1.8 trillion dollars in 2016 making it the 8th largest economy in the world. Although the country has recovered from its first quarter 2015 recession, its GDP value remains below the time before the crisis. According to export.gov (Italy-Market Overview), the GDP grew by around 0.9% in the year 2016. United States exports to Italy in 2016 were roughly $16.8 billion making it the 20th largest export market for the United States.

Furthermore, Italy exports to the United States more than any other non-EU country with the U.S standing as its third largest export destination to Italy. On the other hand, imports to the U.S are around $45.4 billion. Moreover, the cumulative Foreign Direct Investment (FDI) as a percentage of GDP was 17%. Lastly, the value of Foreign Direct Investment of the U.S in Italy stood at $22.5 billion in the year 2015.

The ease of doing business illuminate the easiness of difficulty in starting and running a small-medium business while complying with the country’s regulations. Italy’s World Bank ease of doing business rank stands at 45. According to the World Bank report, “Doing Business Economy Profile 2016: Italy” (pp 17) the country stands at a rank of 50 on the ease of starting a business requiring five procedures, costs 13.8% of per capita income and only takes 5.5 days to do so.

Additionally, the ease of doing business in Italy measurable parameter is ease of getting construction permits. In this case, for one to get a construction permit, the procedure takes 231 days and involves 13 processes in total. The cost for this activity is about 253.6% of per capita income as recorded by the World Bank and International Finance Organization (2013)

Italy is becoming a hotspot for foreign direct investment due to the measures put down by the government. One of these incentives includes the move to grant tax exemptions to businesses that invest directly in areas with high levels of unemployment. Key sectors that are considered lucrative for foreign investment include the tourism, food and real estate industry (Italy – A Hot Spot for Foreign Investment | Invest in EU)

Also, the country is famed for a highly skilled labor force with labor costs below the average in the Eurozone. It has a renowned research and development culture inculcated into industrial processes (Why invest in Italy | Invest in Italy)

Unfortunately, the future of the Italian economy paints a grim picture with the need for new infrastructure. Also, spending on education lags at 5% of GDP, shifting of manufactures to low labor cost countries, and has a massive government debt of $2.4 trillion .( Why Italy’s economy is about to collapse | The Independent)

During the triple-dip recession, the economy of Italy has shrunk by about 10% since the year 2007. The level of youth unemployment stands at 40%, and the overall unemployment rate is between 12% and 13% respectively. Finally, Italian banks have accumulated debts amounting to almost €200 billion making the country have inadequate reserves and capital.

Works Cited

Italy - Market Overview

https://www.export.gov/article?series=a0pt0000000PAu5AAG&type=Country_Commer cial__kav

Doing Business IN ITALY 2013. International Finance Organization, 2013, p. 27, Doing Business IN ITALY 2013.

Doing Business Economy Profile 2016 : Italy. World Bank, 2016, p. 17, Doing Business Economy Profile 2016 : Italy.

Italy – A Hot Spot for Foreign Investment | Invest in EU

investineu.com/content/italy-–-hot-spot-foreign-investment

Why invest in Italy | Invest in Italy

www.investinitaly.com/en/why-invest-in-italy

Why Italy’s economy is about to collapse | The Independent

www.independent.co.uk/.../why-italy-s-economy-is-about-to-collapse...