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Similar to Country analysis (Italy) Foreign Trade
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Country analysis (Italy) Foreign Trade
- 1. 1 Country Analysis (ITALY) Team Members Pranav Gupta Ankit Tiwari Udit Singhal Varun Mittal Prashant Singh
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- 4. Italy is a peninsula in the mediterrannean sea covering 30,1401km square . Boot like shape kicking island of Sicily. Much of Italy is covered with mountains , Dolomite moutain wich extend to north italy. Longest river is Po in Italy. Climate is dry hot summer and cool winter (mediterranean climate).
- 6. Neighbouring Countries • France • Switzerland • Austria • Slovenia • San Marino
- 7. 7 Rich resources of Italy Italy has a variety of natural resources such as Coal Zinc Potash Marble Barite Mercury Crude oil reserves and natural gases. Government of Italy have complete control of its mineral resources.
- 8. Other important fact about Italy • Population is 60 M as per update of 2018 • GDP PPP of Italy is 2.43 trillion • GDP nominal 1.89 trillion according to 2019 • Italian Republic • Offical language Italian • Goverment - Unitary parliamentry Republic
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- 10. 10 Business Communication Right Language and Right Gesture. Eye Contact. Trust. Language – English, French, German, Italian. Pyramidal hierarchy. Centralized decision making.
- 11. 11 Business Etiquette Cross Cultural skills. Courtesy is appreciated. Punctuality is not a priority for Italians. Lengthy Negotiations. In the private sector, Italians tend to work long hours.
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- 15. POLITICAL and LEGAL Factors The Italian politics and government are a fusion of democracy and republic, with people’s representatives in the parliament ruling the country. Italy’s Chief of state is President Giorgio Napolitano. Premier Minister Silvio Berlusconi is the head of the state in Italy. Govt. has imposed tax rate upto 43%. Italy has imposed low tariffs on agricultural products like wheat, and on dairy and meat products.
- 16. Cont. It is also a founding member of the North Atlantic Treaty Organisation (NATO) ,WTO, the Organisation for Economic Co-Operation and Development (OECD), the Organisation for Security and Co- operation in Europe (OSCE), & G7 and Council of Europe. The recent budget includes measures to stimulate investment, a reduction in the corporate tax rate. Italy’s governmental debt exceeded in the recent times.
- 17. Doing business in Italy is not straightforward. The corporate tax burden is the heaviest in Europe, and the levels of corruption and tax evasion are particularly high. A Common External Tariff (CET) is applicable to other countries, including Australia. The Ministry of Economy and Finance – Department of Finance (MEF) is responsible for import and customs regulations.
- 18. ECONOMIC FACTORS 3rd largest economy in Eurozone 12th largest by GDP 8th largest exporter in the world with $514 billion exports. Currency: Euro Gross domestic product: 1.93 lakh crores USD (2018) World Bank Unemployment rate: 9.9% (Sep 2019) GDP per capita: 31,952.98 USD (2017) World Bank Government debt: 134.8% of GDP (2018) GDP growth rate: 1.5% annual change (2017) World Bank
- 19. The service sector is highly significant for Italy’s economy as it constitutes about 75% of Italian GDP and employs about 70% of the country’s workforce. Tourism is one of the fastest growing and most profitable industries in Italy and comprises the largest part of the service sector. Italy’s competitiveness score has improved slowly and Italy places 44th in the Global Competitiveness index.
- 20. SOCIAL FACTORS
- 23. Technological factors 40% of Italian manufacturing companies use 3-D printers for fast prototyping and 25% use robotics in manufacturing process. Italy is Europe’s 3rd largest exporter of flexible manufacturing technologies, including robotics,with $9.6 billion in Italian exports. Ranks 2nd in global competitiveness in industrial machinery. More than 70% Italian machines are exported to other markets. USA is a major importer of Italian machinery
- 24. Environmental Factors Italy has an amazing atmosphere, different landscapes, lakes and snow covered mountains. A perfect weather that makes agriculture to play an important role in the Italian economy. Italy supports a clean eco environment and has proved by hosting Expo Milano 2015 -Feeding the planet, energy for life to promote green, eco environment. Tourism is one of the fastest growing and most profitable industries in Italy and comprises the largest part of the service sector.
- 25. Currency Analysis of Italy The currency of Italy is Euro. The Italian Euro is abbreviated as € and its international code is EUR. The Italian currency notes are printed by the Bank of Italy which also acts as the regulator. Place where the Euro is used include Slovenia, Greece, Austria, Estonia, Luxembourg, Finland, Belgium, Spain, Cyprus, Portugal, Slovakia, Malta, Lithuania, Germany, France, Ireland, Latvia, and Netherlands.
- 26. Euro foreign exchange reference rates as on 18/11/2019 US dollar 1.1061 Japanese yen 120.55 Bulgarian lev 1.9558 Czech koruna 25.593 Danish krone 7.4726 Pound sterling 0.85330 1 Euro equals 79.63 Indian Rupee
- 29. 29 Italy is member of European union. Having Geographical advantage. Italy is the world’s eighth-largest economy (2.161 trillion US dollar). Exports in 2018 was $455 billion. Imports in 2018 was $401 billion. positive trade balance of $54.3 billion. (64.6%) of Italian exports - European countries 16% in Asian countries. 11% worth of products to North America. 3.9% to Africa 2.2% to Latin America 1% to Australia
- 30. 30 Top 5 Countries where Italy Exports:- Country Export value Export %age Germany $68.7 billion 12.6% France $57.2 billion 10.5% United States $50.1 billion 9.2% Spain $28.4 billion 5.2% UK $27.7 billion 5.1%
- 31. 31 Italy top 5 commodities Exports:- 10.5 3 1.68 1.35 1.24 0 2 4 6 8 10 12 Refined Petroleum Gold Olive Oil Coffee Platinum Italy's top 5 commodities export Refined Petroleum Gold Olive Oil Coffee Platinum US billion $
- 32. 32 Top 5 Countries where Italy Imports:- Country Import value Germany $ 72.2 billion France $ 39.7 billion China $31.8 billion Netherland $24.8 billion Spain $22.7 billion
- 33. 33 18.9 3.67 3.04 1.79 1.67 0 2 4 6 8 10 12 14 16 18 20 Crude Petroleum Gold Copper Wheat Wheat Italy's top 5 commodities Import Crude Petroleum Gold Copper Wheat Wheat Italy top 5 commodities Import:- US Billion $
- 34. 34 India & Italy Trade Relations:- Country 2017- 2018 % Share 2018- 2019 % share Italy 5709.85 1.8812 5593.42 1.6946 India’s Export to Italy (US million $) Country 2017- 2018 % Share 2018- 2019 % share Italy 4706.89 1.0110 5292.38 1.0295 India’s Import from Italy (US million $)
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- 37. Store Observation is a research technique that is used to gain insights from shoppers in a retail environment. It involves observing real shoppers to understand their behaviour and how they interact with fixtures/product displays etc.in-store.
- 38. 38 Italy store observation:- • Cars - You will find few Suvs there but you can easily find Mercedes Taxi in Italy. • Italians and their love for black Italians seem to love the color black, and leather. Of course, they really seem to like black leather. • Italians are smokers but look pretty good. Very few Italians are overwieight. • Italians are stylish. They wear fit and stylish clothes. • Italian food is excellent. Italian cheese, coffee, and gelato, Pizza etc. • Check the size. In Italian stores you will get drinks and snacks. One can found out that the typical liquid container size is 1.5 liters. Everything from water to juice was in 1.5 liter containers.
- 39. 39 • Don’t worry about tips Tips are asomething which is already added in bills. It reduces confussion and hassels. • Shops in Italy:- There seems to be an insane level of specialization in Italy, especially in the little shops in the cities. For example, You can find shop selling only drapery rods and another store selling only white nurse uniforms. • Forget about lines:- When waiting for things in Italy, lines rarely form. Instead, people mob around things and squeeze in over time unless the things are internationally like air ports. Italians will be happy to see you speaking Italian.
- 40. 40 Marking, Packaging and Labeling
- 41. 41 Packaging,labeling and marking Decisions related to mandatory marking, labeling and/or packaging requirements generally taken by EU but sometimes be left to individual Member States. Marking- A mark is a symbol and/or pictogram that appears on a product or its respective packaging. The intention of such marks is to provide market surveillance authorities, importers, distributors and end-users with information concerning safety, health, energy efficiency and/or environmental issues relating to a product. Labeling:- Packaging:- Packaging in Italy applies the marketing only to packaging, to differentiate your product from the competition and position it inside customer’s head as the first choice in its class. Labels appear in the form of written text or numerical statement.
- 43. 43 Made in Italy Labels
- 44. 44 Packaging of Italian products
- 46. 46 Thank You!