Doing Business in Italy Essay -- International Business

Doing business in Italy is actually different than in the United States. identify to move onto a slow, but steady, path of frugal growth Italy, at first glance, seems to be a promising business environment with intercommunicate increases in GDP per capita in the coming years, according to phone line monitor lizard International (Italy Autos Report 30). However, there be numerous cultural, administrative, geographic and economic differences that make the business environment much different than that in the US. generally dominated by domestic carmakers, mainly Fiat S.p.A., the auto assiduity in Italy doesnt look very appealing for new firms because of the spirited barriers to entry. However, foreign carmakers the like Ford have managed to penetrate the Italian market, with vehicles like the Fiesta, by focusing on small fuel efficient cars. Furthermore, Italy faces many problems that makes it a less attractive place for business such as low business productivity, insu fficient investment in high engineering science industries, disadvantageous demographics, and the labour market.(Italy Autos Report 31)Although the automotive market in Italy doesnt show much room for sales growth as shown by a high car ownership per capita. In 2009, broadly ascribable to government incentives, the auto market saw a more normalize drop in sales than in the previous year (fig. 1). consort to the Business Monitor International total auto sales is forecasted to pass by 2.58 million units by 2014 (Italy Autos Report 27). Taking into account Ghemawats quaternity dimensions of distance culture, administrative, geographic and economic shows that while there are cost and risks associated with doing business in Italy there are also advantages. English is taught primordial as a secondary languag... ... both advantages and disadvantages. The current auto market, mostly dominated by domestic players due to the consumers loyalty toward domestic brands, shows very little appeal for new entrants. Some foreign carmakers, Ford for example, are showing signs of growth in this market. Ford has been able to do this by appealing to the consumers desire, for small affordable cars. Works CitedItaly Autos Report - Q1 2010. Italy Autos Report 1 Jan. 2010 ABI/INFORM Trade & Industry, ProQuest. Web. 28 Feb. 2014.Italy - Labor. Encyclopedia of the Nations. 28 Feb. 2014. . Potesta, Sandra. How to do Business in Italy. Feb. 2007. 28 Feb. 2014. . Welcome to Italy. 28 Feb. 2014..