Italy

Connor McMahon, Ben Roye, Naveen Kumar, Nathan Maedgen

Demographics

• Population– According to the latest census in 2008 the population was 59,832,179– Texas Population 24,782,302

• Birth and death rates– (Per 1,000 population)– Birthrate 8.5, Deathrate 10.5

• Age categories by percentage– 0-14 years 14.03%, 15-64 years 65.93%, 65 years and over 20.04%– 1.07 males per female

• Natural Resources include– coal, mercury, zinc, potash, marble, barite, asbestos, pumice, fluorspar, feldspar, pyrite (sulfur), natural gas and crude oil reserves, fish, arable land

Economic Environment• Economic Indicators

– GDP $2.3 Trillion– 1.8% Inflation rate (avg rate 2.15%)– Unemployment rate 8.2%

• Currency– Part of the Euro (Current Exchange rate 1 U.S. Dollar = .7247 Euros)

• Tax System– progressive, the higher the income, the higher the rate of tax payable.– In 2010 the tax rate for an individual is between 23%-43%

• Stock Market– Italy's main stock market index, the FTSEMIB

• Top Exports– $241 Billion in Exports– Medicinal, dental and pharmaceutical preparations, Wine & related products, Footwear Jewellery, Household furniture, Industrial engines, pumps, generators, Stone, sand, cement, lime

• Standard of Living– prosperous north and central regions, relatively poor south.

History• 1804 Napoleon Declares himself emperor of Italy• 1849 Austria regains control of most of Italy• 1911 Italy Defeats the Ottoman Empire• 1915 Italy joins WW I on the side of the Allies• 1925 Mussolini becomes dictator• 1943 Italy surrenders to the Allies in WW II• 1946 Italy abolishes the monarchy and establishes a republic

Political System• Type of Government

– Italy has been a democratic republic since June 2, 1946

• Risk Factor– Low Risk, Stable Developed Country

Geography/Climate/Environmental Issues

• Geography– Italy is a peninsula in the Mediterranean Sea– Much of Italy is covered by mountains– The Apennine mountains cut down the center of Italy, stretching from north to south, dividing the east and west coasts.– Italy includes two large islands: Sicily and Sardinia. Sicily is the largest island in the Mediterranean, with active volcanoes and earthquakes. Sardinia is basically mountains rising out of the ocean.– Italy also has two independent countries within its borders. Vatican City is the center for the

Roman Catholic Church, and is the world's smallest country. San Marino, on the north east coast of Italy, is an independent republic.

• Climate– Italy has a largely temperate climate with regional variations– In summer the Northern parts of Italy are warm with occasional rainfall, the central region is somewhat stifled by humidity and the south scorches under the dry heat.– Most people visit Italy between June and August, however the best time to visit is in

Spring (April-May) and Autumn (September-October).• Environmental Issues

– Italy has been slow to confront its environmental problems– Of Italy's mammal species, 10 are endangered, as well as 7 bird species and 202 plant species.

Sociological Aspects of Italy

Social Problems

• Poverty (27.1%, varies greatly by region)• Divorce (Divorce Laws of 1987- Joint Custody)• Child Abuse

• D’Ambrosio, Conchita, and Carlos Gradin. 2003. “Income Distribution and Social Exclusion of Children: Evidence from Italy and Spain in the 1990s.” Journal of Comparative Family Studies 34: 479-495.

• Ronfani, Paola. 2001. “Children, Law and Social Policy in Italy.” International Journal of Law, Policy and the Family 15: 276-289.

Social Class• A hierarchy of social class rank in Italy today, going from highest to lowest:

• 1. Bourgeoisie (10% of the working population) includes high-class entrepreneurs, managers, politicians, self-employed people, etc.

• 2. White-collar middle class (17% of the working population) includes middle class workers not employed in manual work.

• 3. Urban petit bourgeosie (14% of the working population), is mainly made up of shopkeepers, small-business entrepreneurs, self-employed artisians etc.

• 4. Rural petit bourgeosie (10% of the working population) consists of small entrepreneurs or estate owners who operate in the countryside, mainly in agriculture and forestry.

• 5. Urban working class (37% of the working population) refers to the people employed in manual work.• 6. Rural working class (9% of the working population) consists of people operating in the primary industry,

such as farmers, loggers, fishermen etc.

Religion In Italy

• Catholicism is 87.8% of nation• Christianity is 91.6%• No religion is 5.8%• Islam is 1.9%

• Date taken from “Eurobarometer” by EU Commision

Culture

• ~60 million people composed of German, French and Slovene minorities

• Main language is Italian; 5% of the population also speaks French, German, and Slovene

Subcultures

• Northern and southern Italy are characterized by highly different historical backgrounds.

• In the Middle Ages, northern Italy consisted of independent communes. They lived relatively unrestrained by the monarchy, and civic freedom flourished.

• Southern Italy was ruled with an iron hand by the Norman kings. This fostered the development of the mafia and the clientelismo

• Because of these historical differences, slight variations in the cultures of the north and south still exist today!

• Southerners tend to use collective insults more, “your mother!”

• Northerners are more socially independent, similar to Americans. Southerners are interdependent, much like the holistic view of Asians.

Greetings

• Salve – Hey!• Pronto – Hello when answering phone• Ciao – Lata Alligata!• Buon Giorno – Good Morning!

Holidays

• Epiphany on Jan. 6: The literal 12th day of Christmas, kids wake up to find presents from the Befana, an ancient Santa Claus-like figure whose name means “giver of gifts”. This witch flies on a broomstick and drops toys and candy down chimneys!

• Liberation Day on April 25th

• Ferragasto on Aug. 15th: When Mary rose to heaven; celebrations in the streets and mass drinking

Tipping

• The people of Italy are not used to big tipping but sometimes it's just a matter of personal discretion. In major cities, restaurants add a 15% service charge and a separate tip for waiters at approximately 5%-10%. A fixed rate is charged per suitcase to porters in railroad stations including airports. If a porter has been very helpful, an additional tip of 25 euro is given.

Food

• Prima colazione (breakfast) – usually a light cappuccino and brioche pastry

• Pranzo (lunch) characterized by a starter or antipasto, then pasta, rice or soup, then a meat or fish, and finally a fresh fruit

• Dinner or cena – the major meal of the day; vegetables, seafood, veal or chicken over pasta, especially in Northern Italy; finished off with Gelato

Business Environment

• economical growth rate is on average 1.8 % a year that is comparatively low in comparison with other economically developed countries like US 2.5%, Netherlands 2.2%, United Kingdom 2.1%

• Telecommunications infrastructure: Italy has very well developed telecommunications infrastructure and as a percentage of GDP expenditures in this sector are similar to other economically advanced countries.

• Plenty of "mafia" and corruption in Italy. With a plethora of bureaucratic obstacles there are also many back doors to be opened with bribes and influence. It is difficult for companies from outside Italy to be successful with out a network of connections, to be gained only by having important local contacts.

• Oracle, Microsoft and IBM have all come into the country recently and are enjoying success.

Business Environment

TAXES/TARIFFS• Italy is a member of the European Union and shares the Common External Tariff regime. EU

duties are charged by the Italian Customs Agency on the CIF (cost, insurance and freight) value of the product imported into Italy.

• Value Added Tax (VAT) is an indirect tax on goods and services which is borne by the end consumer and applied to the value added at each stage of the supply chain. In Italy, it is called Imposta sul valore aggiunto.

Infrastructure• Italy has an efficient and modern infrastructure, even though it performs poorly compared

to other Western European countries of comparable size. The whole peninsula is well connected through an extensive system of railways, expressways, national roads, airports and seaports.

• Italy has a number of important international airports and the national carrier, Alitalia, has a fleet of 166 planes which transport 25 million passengers annually and connect Italy to 60 other countries. Overall, Italy has 136 airports

• most goods in Italy are transported by road, the system is constantly upgraded and improved. It provides a highly developed and efficient network of interconnected highways and lesser roads, particularly in northern regions.

• Infrastructure is not the same quality throughout the country. While the road and rail networks are intricate and plentiful in the north and center of the country, the southern infrastructure is poor.

Management Aspects

Business practices in Italyo During business meetings in Italy it is common to express open disagreementand constructive conflict. Initial meetings are often informal opportunities forevaluating colleagues and establishing relationships, not making businessdecisions.

o When greeting your Italian business colleagues use last names and, if known,appropriate, professional titles until invited to do otherwise.

o The exchanging of business cards should take place only at the beginning of thefirst business meeting. Ensure that your card is translated into Italian on oneside and that you include any advanced educational qualifications and yourfull title and position.

Management Aspects

Working practices in Italy

o Punctuality in the Italian business environment, as a rule, is taken veryseriously. However, even though you will be expected to arrive on time, yourItalian counterparts may not always adhere to this rule.o The Italian bureaucracy and legal systems are rather slow; therefore expectdecisions and business actions to take time.o Generally speaking, the best times to make business appointments are in themorning between 10 a.m. and 11 a.m., or after 3p.m.

Management Aspects

Business etiquette in Italy (Do's and Don'ts)o DO maintain eye contact while talking. This is a sign to your Italian businesscolleagues that you are sincere and honest.

o DO shake hands with everyone when being introduced during a business orsocial meeting. However, men should wait for women to extend their handfirst.

o DO ensure that you knock before entering an office in Italy and always closethe door behind you.

o DON'T appear impatient or rush your Italian colleagues in their businessnegotiations. Italians may see this as a sign of weakness.

o DON'T give a business gift until you receive one first. In addition, giftsshowcasing your company's logo should be avoided.

o DON'T be surprised if during business meetings your Italian colleagues speaksimultaneously or interrupt one another. It is a common trait of the Italiancommunication style.