This document provides an overview of various aspects of culture in Italy. It begins with a brief history of Italy, noting that the Greeks and Romans settled the Italian peninsula and it was eventually unified in the 19th century. It then discusses Italy's involvement in World Wars I and II. Subsequent sections cover Italy's geography, family structures, education system, complex political environment, macroeconomic factors, and business customs. The document aims to inform those wanting to do business in Italy about cultural considerations across these different domains.

1. Cross Cultural Analysis of Italy
BA 317—International Management
Dr. Zwanziger-Elsinger
Bridget Steffen

2. History
Before it was Italy, it was known as the Italian Peninsula. The Greeks settled in the
southern tip of the peninsula starting around the eighth century, B.C. and the Romans settled
up the northern half (‘Background Note: Italy, 2011’). Eventually, the Romans took over all of
Italy, including the islands of Sardinia and Sicily. When the Romans fell, there were various
invasions on who should have ownership of the country. Eventually, this caused Italy to be
divided into several states and kingdoms who fought with each other and caused the political
unity to fall (‘Background Note: Italy’). It wouldn’t be until the 19th century that Italy was able
to become one country again; however, this didn’t include Rome until sometime later. Italy
then became a “constitutional monarchy with a parliament elected under limited suffrage”
(‘Background Note: Italy, 2011’).
During World War I, Italy joined the side of the Allies and acquired some land
after the war was over. Shortly after, Benito Mussolini took over the country and causing the
king to lose most of his power. Italy joined up with Germany and Japan, who both had declared
war on the United States (W.W. II) Italy’s King dismissed Mussolini after Sicily became invaded
and turned against Germany to fight against them, which eventually led to the downfall of Italy
in WW II. In 1946, Italy changed from a monarchy into a republic. Several of the problems Italy
was dealing with have been resolved, but there is still plenty of political tension, plenty of
corruption happening as a whole within the country, as well as strain between the poor south
and the prosperous north.
Due to the history of Italy, people who want to come and do business within the
country should be aware of all the political unrest and instability present in the country. Not all

3. parts of Italy are corrupt and shady to deal with; just be aware of who is being dealt with and
make sure to follow all the customs Italy has so a successful deal can be made.
Geography
Italy is located in the southern part of Europe. It is a peninsula which extends into the
Mediterranean Sea. Italy is often called the boot of Europe due to the shape of the country.
The country itself isn’t too large; Italy is only slightly larger than the state of Arizona (‘Fun Facts
About Italy’). They border six countries, including Austria, France, San Marino, Slovenia,
Switzerland and Vatican City (‘Europe: Italy, CIA, 2011’). Italy also has a mountain chain, the
Apennines, which runs through the center of the peninsula.
The climate in Italy is that of Mediterranean, meaning it is similar to that of a tropical
climate. It is often dry and hot in the southern part of Italy, and the winters in the northern half
tend to be cooler. The terrain through most of Italy is rugged and mountainous. The highest
point in Italy is Mont Blanc, which is 4,748 meters (or roughly 15,577 feet) and the lowest point
would be the Mediterranean Sea (‘Europe: Italy, CIA, 2011’). There are six major regions and
two islands in Italy: the Alpine Slope, the Po Valley, the Adriatic Plains, the Apennines, the
Apulia & Southeastern Plains, the Western Uplands & Plains, Sicily and Sardinia (‘Italy’s Way of
Life, n.d.’). Within the six major regions, there are 18 smaller regions (something similar to a
state) and three of these are autonomous.
The overall territory of Italy is similar to that of the United States, so travelling from one
place to the next shouldn’t be difficult to accomplish. Their winters aren’t as harsh as those in
some countries and their summers aren’t as hot as those in others, but typical awareness of

4. what the climate and geography is should be taken into consideration before heading over
there for business.
Family
Italy is famously known for their family lives. They value close relationships with both
sides of a family. Family businesses in Italy are vast throughout the country and are deemed as
prominent. Two-thirds of people live in urban areas. Most live in apartments, whereas the
wealthier people live in single-family homes. Unmarried children often live with their parents,
even if they are adults. They may live in apartments nearby their parent’s home. Women often
work outside of the home and grandparents will watch their grandchildren while the parents
are at work (‘Italy’s Way of Life, n.d.’). In the north, the typical family structure is nuclear
(meaning parents and children), but in the south, extended families tend to live in the same
household (‘Facts and Statistics: Italy, 2010’).
Family businesses are well-recognized and valued in the Italian lifestyle. Take
that into thought when wanting to do business with Italians. Granted, they value hierarchy, as
well as people of age and power, but the family is extremely important to Italians. More than
likely, they may want a potential partner to get to know their family before agreeing to do
business, since that will be one of the key factors into completing a positive business outcome.
Education
There are three major levels in the education system in Italy: primary school, lower
secondary and upper secondary. Schooling is free until the student is done with primary
school; however, school is required starting at the age of 6 through 16.

5. Pre-school or kindergarten is the first level of schooling, which children can start
attending at the age of 3, but it isn’t required to attend. Required schooling starts at the
primary level (also called scuola primaria). Usually, primary school lasts five years and there’s a
range of 10 to 25 kids per class (‘Italian Education, 2010’). While in primary school, children will
learn various subjects, such as learning to read and write, basic math, geography, Italian,
English, social studies, science, music, computer sciences and religion (which is optional).
(‘Italian Education, 2010’). At the end of the fifth year, kids used to be required to take a test to
see if they could advance to secondary level, but this is no longer the case.
The next level of education would be lower secondary school. It is mandatory for
children between the ages 11 to 14. Students are to attend at least 30 hours a week of school
of a curriculum including “Italian, English, an alternative foreign language, history, geography,
science, math, technology, information technology, art, music and physical education” (‘Life in
Italy’). After school, there are other “classes” that are offered. These would be equivalent to
extracurricular activities. Some of these would be music classes, sports and computer classes
(‘Italian Education, 2010’). At each term, the students receive evaluation sheets from their
teachers, which outline skill, behavior and achievement. When their third year comes up,
students take an examination testing them over the various courses they took and if they pass,
they will receive their lower secondary diploma and that will advance them to upper secondary
schooling (‘Italian Education, 2010’).
Once students are in upper secondary school, this involves three to five years of
schooling. The first two years of upper secondary are required and this involves general
education. After the mandatory two year, students have the option to continue secondary

6. school or to discontinue their education. The last three years involved specialized education.
Once they reach this level, students will choose which direction they want to head, in regards
to their studies. The different high schools an Italian student can enroll into would be the
classical(involving the study of Latin, Greek and Italian literature as well as history and
philosophy); scientific (emphasis on physics, chemistry and natural sciences); fine arts
(emphasis on painting, sculpture and architecture); teacher training school (prepares future
teachers; doesn’t entitle them to enroll at a university); artistic school (studies within an artistic
field and to art qualification); technical institutes (prepares students to work in technical field
or in agriculture) and professional institutes (taking classes to achieve a vocational qualification
at a university) (‘Italian Education, 2010’). After the necessary classes have been taken,
students have to take another exam in order to receive their upper secondary diploma. After
this stage, starting a career or go to college. There are roughly 85 colleges in Italy. Of the few
private colleges, most are run by the Roman Catholic Church and more than one million
students attend college in Italy (‘Italy’s Way of Life, n.d.’). The literacy rate in Italy is extremely
high, with the overall average being 98% (‘Europe: Italy, CIA, 2011’).
The education systemof Italy seems to be fairly decent, so managers from outside
companies shouldn’t have to worry about incompetent people. Since Italy has a variety of
schooling options and colleges that have a focus in a particular subject, managers should find it
easy to find someone to work for them in a respected field. The schooling for some of the jobs
required take longer than it would for an American, but at least they would be well-educated in
their field and should be a valuable asset to any company.

7. Politics
Since 1946, Italy has been deemed as a republic. Because of this, the day of
independence (or national holiday) for Italians is June 2. Prior to 1946, Italy had been under
monarchy control. There have been over 60 turnovers within the government since the
beginning of a republic government (‘Background Note: Italy, 2011’).
Similar to American politics, there are three branches to the Italian government: the
executive, which consists of the president, who serves a 7-year term and has to be at least 50
years old (‘Italy’s Way of Life, n.d.’) and the Council of Members, which is headed by a prime
minister. Even though there is a president and a prime minister present, the prime minister is
the one who holds the majority of the power and the president is there as more of a formal
figure (‘Italy’s Way of Life, n.d.’); the legislative branch, which has a bicameral parliament, a
315-member on its Senate and a 630-member Chamber of Deputies; and the judicial branch,
which has numerous independent constitutional courts (‘Europe: Italy, CIA, 2011’). Members of
the judicial branch are not elected; five are chosen by the Prime Minister and the other five are
chosen by other judges currently in the courts (‘Italy’s Way of Life, n.d.’)
There are a countless number of different political parties in Italy, but the two major
ones would be the Democrats and the People of Freedom. The age of voting is different,
depending on which election is up. To vote in most elections, citizens have to be at least 18
years of age, but if it is a Senate election, voters must be at least 25 years of age.
The legal systemof Italy falls under a civil law practice. The legal systemitself is
extremely complicated and “most of which are ignored” by citizens of Italy (‘Laws and Courts of
Italy, 2011’).

8. As stated before, the political systemis pretty shady in terms of what is done. As a
potential business partner, make sure one knows what the government is like and how they like
things to be done without falling into the corruption. Be aware of their government instability
and do enough research before coming in, because who knows what to expect from the Italian
government.
Macroeconomics
Italy has a diversified industrial economy, where there is a division between the north
and south. The north is a highly developed in industry and is dominated with private
companies (‘Europe: Italy, CIA, 2011’). In the south, it is less developed than in the north, and
most businesses deal with the agricultural field (‘Europe: Italy, CIA, 2011’). The unemployment
rate greatly varies depending on the north and south as well. In the north, the unemployment
rate is around 8.4%, and in the south, it has been as high as 20% (‘Europe: Italy, CIA, 2011’). The
inflation rate is said to be 1.6% (‘Europe: Italy, CIA, 2011’).
The major imports of Italy are “engineering products, chemicals, transport equipment,
energy products, minerals and nonferrous metals, textiles and clothing, food, beverages and
tobacco” (‘Europe: Italy, CIA, 2011’). Just in imports alone, they bring in close to $475 billion
dollars. Their biggest importing partners are Germany, France, China, the Netherlands and
Spain (‘Europe: Italy, CIA, 2011’). The major exports of Italy are a lot of the same items as their
imports. The biggest exporting partners are Germany, France, Spain, the U.S. and the U.K. The
different types of industry which Italy engages in are tourism, machinery, clothing, ceramics,
footwear, food processing and many more (‘Background Note: Italy, 2011’).

9. The real GDP per capita number for Italy, as of 2010 is $30,500. (‘Europe: Italy, CIA,
2011’). There are three major sections on which this GDP is produced: 72% of it comes from
services, 25% comes from industries and nearly 2% comes from agriculture (‘Europe: Italy, CIA,
2011’). The national budget of Italy is extremely poor, considering all the money it produces.
In 2010, their revenues totaled out to $957.6 billion dollars, but their expenditures greatly pass
their revenue: it is reported their expenditures are 1.057 trillion (‘Europe: Italy, CIA, 2011’).
With this debt, there are ranked eighth in the world with their public debt being nearly 120%
over GDP.
Italy’s method of taxation is a complicated one to follow. There are so many different
taxes for different things. Everyone has a codice fiscale, or a tax identification number. This
doesn’t apply to just Italian citizens; if you are a foreigner, they will have one as well. There are
different levels of taxation as well, ranging from the local, regional and national level. Taxation
is very high, with Italians handing over as much as 45 cents to the dollar to the proper
authorities (‘Taxes in Italy, 2011’).
Italy is the land of 1,000 taxes, according to the Italy Travelscape website (‘Tax System
of Italy, 2010’). Most of their taxes are referred to in acronym terms and there are a lot of
them to list, so we’ll just go with the ones which seemimportant. First off, there is the IRPEG
(Imposta sui Redditi delle Persone Giuridiche) tax and this is a corporation tax on income of
limited liability and joint-stock companies (‘Tax System of Italy, 2010’). Another one is the IRAP
(Imposta Regionale sulle Attivit Produttive). This is a newer tax which integrates other taxes in
with it. This tax isn’t based on a pre-tax profit but on a number that is a called a “profit plus
personnel cost” which is taxed at 4% and will only apply if one has their own business and

10. includes health contributions, meaning the owner of the business has to pay for the health
coverage of the owner, any partners and all employees (even if they are part time, full time and
fixed-term) (‘Tax System of Italy, 2010’). As stated before, there are a number of taxes in which
Italy has for various things, but the most important have been covered. For people who want
to do business in Italy, make sure everyone is aware of the different taxes they will eventually
have to pay. It would probably be easier for a manager from an outside company who wants to
work with Italy to stay within their own country, unless they want to pay a variety of taxes.
Business customs & practices
When meeting for the first time, handshakes with eye-contact and a smile is what is
considered appropriate since the colleagues are strangers to one another. Once the
relationship develops, a kiss on each cheek is deemed an appropriate introduction.
When it comes to doing business, Italian favor doing business with those they trust and
know and also prefer having face-to-face contact. In lieu with this, Italians like to know about
their colleagues as a person and get to know you on a personal level. Appearances are
extremely important to Italians since the first impression will be the one they remember. They
also like it when colleagues take the time to get to know them as well and asking questions is
positive action. In order to have a lasting impression on one’s Italian colleagues, dressing in the
best fashion possible will help; Italians are very fashion conscious and will base people on how
they look (‘Facts and Statistics: Italy, 2010’). When coming into a business meeting, men and
women should dress conservatively: men wear dark colored business suits and women wear
dresses or business suits, as well as having the appropriate elegant accessories.

11. If one wants to make an appointment, it must be set up three weeks in advance or else
they won’t agree to it. Negotiations are vastly different, depending on which part of Italy
business is being conducted. In the north, businesspeople are straightforward, see time as
money and want to get straight to business as soon as possible. They also value timeliness with
their colleagues and potential business partners. However, in the south, it’s more relaxed and
social time is far more prominent. But in either part of Italy, allow them to set the pace for how
discussions are decided. If they want to talk socially, agree to let them talk socially for a while;
they will eventually get to business talk. Italians also respect those who have a higher level of
power. While in business meetings, don’t be offended if raised voices come up; it’s just their
way of making themselves have their ideas heard. Interruption is also common in Italian
business meetings and decisions are never decided within the first meeting or two. It goes back
to the importance of relationship development.
The business customs of Italy are greatly valued by its citizens and should be treated as
such when engaging in business deals and for social occasions. They do a lot of things U.S.
businessmen don’t do, but it should still be respected. The same goes with an Italian wanting
to do business in the U.S. Even though it isn’t their own country, still be courteous to their
practices and what they think is the best method of getting to know someone when it comes to
business dealings. Also, be aware that most Italian businesses are closed for the majority of
August, because they have holiday where most won’t be open.
Religion
Since the Roman Catholic religion was started in Italy, it seems appropriate to state that
the major religion present in Italy is of Roman Catholic faith. Of its citizens, 90% of people are

12. considered of the Roman Catholic faith, but only a third of them say they faithfully practice it.
The remaining 10% of the population is either one of three religions: Protestant, Judaism and
Muslim (‘Europe: Italy, CIA’). According to the website Kwintessential, Italy has “more Catholic
churches per capita…than in any other country” (‘Facts and Statistics: Italy, 2010’). Each day of
the year has at least a patron saint to which is it associated and the Catholics in Italy have a high
respect for those who are older, have been prosperous with business dealings and have well-
connected families (‘Facts and Statistics: Italy, 2010’).
Even though it isn’t directly stated, religion is a huge factor in Italy. Being aware of the
religious practices is a good thing to know when coming to do business with Italy. They have a
number of holidays associated with their religion and business should not be done on those
days, as a sign of respect.
Living conditions
As of July 2011, the population in Italy is over 61 million people (‘Europe: Italy, CIA,
2011’). Among the 61 million people, the average age of the population is 43 years old and life
expectancy is averaged to be 81 years of age (‘Europe: Italy, CIA, 2011’). The birth rate is 9.18
live births to every 1000 in the population and infant mortality rate is low, with an average of
3.38 to every 1000 births. Overall, there are more males babies being born than female (1.059
males/female ratio at birth) (‘Europe: Italy, CIA, 2011’). The top five most populated areas in
Italy are Rome, Milan, Naples, Turin and Palermo.
Language
The official language of Italy is Italian, which is spoken by roughly 93% of the people,
and about 50% of those who speak Italian have a regional dialect. (‘Facts and Statistics: Italy,

13. 2010’). Throughout the country, there are other languages which are spoken, such as German,
French and Slovene. In addition to these, there are several forms of dialects which are
incomprehensible and some researchers believe these should be languages of their own as
opposed to being associated with Italian (‘Facts and Statistics: Italy, 2010’).
Conclusion
The relationship between the United States and Italy is a good one and should be
recognized as such. If the United States wants to continue doing business with Italy—even new
businesses who have never been to the country—should take into consideration just how
different Italy is compared to the U.S. First off, be aware of their highly-valued family lifestyle
and that family means a lot, so be polite and considerate to family members if a chance to meet
them comes up. They are highly educated people who come from Italy, due to their education
system and the different levels a student has to go through in order to make it to the next step.
Their political and government is more corrupt than our own, so be aware of that before
coming into the country. They are still in the process of making it somewhat stable, but due to
various factors, it will be some time before stability can be met. The different taxes imposed in
the country are ridiculously high and this could be part of the government instability going on.
Just know what types of taxes could affect someone coming into the country. Their business
customs should be one not looked at lightly: appearance is everything to an Italian, so
appearing in the best fashion possible will increase the chance of having a positive business
deal and make sure everything sent to the Italian businessperson who is being dealt with, write
everything out in Italian, even if it’s just an introduction. Religion should be carefully
considered and respected. If all of the topics listed are taken into consideration and are

14. adhered, sealing the deal with an Italian will go along smoothly and the relationship between
the United States and Italy will continue to grow positively.

15. References
(12 May 2011). U.S. Department of States: Diplomacy in Action. Retrieved from
http://www.state.gov/r/pa/ei/bgn/4033.htm#profile
(2011). Countries and their Culture. Retrieved from http://www.everyculture.com/Ge-
It/Italy.html
(2011). Just Landed: Italy. Retrieved from
http://www.justlanded.de/english/Italy/Articles/Visas-Permits/Legal-System
(2011). The World Factbook: Central Intelligence Agency. Retrieved from
https://www.cia.gov/library/publications/the-world-factbook/geos/it.html#top
(2010) AngloINFO: The Global Expat Network. Retrieved from
http://rome.angloinfo.com/countries/italy/schooling.asp
(2010). Key Italy: The New Way to Buy Property. Retrieved from
http://www.keyitaly.com/article/taxes-in-italy/
(2010). Kwintessential: Italy- Language, Culture, Customs and Etiquette. Retrieved from
http://www.kwintessential.co.uk/resources/global-etiquette/italy-country-profile.html
(2009). Life in Italy: Fun Facts. Retrieved from http://www.lifeinitaly.com/potpourri/fun-
facts.asp
(n.d.) Italy Travelscape. Retrieved from http://www.italytravelescape.com/Tax%20system.htm
(n.d.) Oracle ThinkQuest Education Foundation. Retrieved from
http://library.thinkquest.org/J0112187/italy_way_of_life.htm