COUNTRY PROJECT RYLIE HEALY
CURRENT NEWS
Protesters opposed to a constitutional refereNdum in Italy clash with police in Florence Italy migrants: Amnesty accuses police of torture Insight: Italy’s Chinese garment workshops boom as workers suffer Italian textile suppliers join force to promote sustainability
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42 50 N, 12 50 E
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COUNTRY TRAITS CONTIENT : Europe GOVERNMENT: Parliamentary Republic SIZE: 301,340 sq km CAPITAL: Rome CURRENCY: Euros( 1 euro = 1.13 usd) LANGUAGE: ITALIAN Population: 62 million President: Sergio Mattarella Prime Minister: Matteo Renzi
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median age
80%
.93 %
99 %
Christian males/females Literacy rate (majority roman catholic)
Italian (Albanian, N. African, Romanian)
DEBT 132.7% of GDP UNEMPLOYMENT RATE 42.7% GDP GROWTH +0.8% BUDGET DEFECIT 2.60% REVENUE 876 Billion INFLATION 0.3% LABOR FORCE 26.2 million (2014) INDUSTRIES Tourism, Textiles, Clothing, Machinery, Footwear, Motor Vehicles,Food Processing , Iron and Steel, Ceramics
MINIMUM WAGE NONE
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92%
IMPORT EXPORT $509 BILLION
$466 BILLION
Cars Crude Petroleum Packaged Medicaments Petroleum gas
Cars Refined Petroleum Valves Packaged Medicaments
Germany (70.2B)
Germany ($61.3 B)
France (39.5B)
France ($49.8B)
China (33.2B)
US ($40.88B)
Russia (22.8B)
UK ($28.1B)
Netherlands (27.3B)
Switzerland ($22.5B)
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LEAD TIME NATIONAL HOLIDAYS January 1- New Years Day January 6th - Epiphany April 5th - Easter Day
VACANZE!
April 6- Easter Monday April 25th Anniversary of Liberation May 1st Labour Day June 2nd Republic day August 15th Assumption Day November 1 All Saints December 8th Immaculate conception
Italians usually take holidays off in August as it coincides with Assumption day, RANGING FROM A WEEK TO A MONTH.
December 25th Christmas Day December 26th St. StephenS
IMPORT DAYS: 18
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EXPORT DAYS: 19
SOCIAL & TECHNOLOGY Social
- Strong security system
- Family being an important value
- High literacy and life expectancy rates
- Regionalism (North, South, Center): Differences in Traditions and Socioeconomics linguistics
Technology - Not as Technologically advanced as other European countries
- Intellectual Property laws improved upon
- Anti-piracy law came into action in March 2014 combating anti copyright piracy over the internet
- Mobile subscribers grew by an average of 8.26% during 2000-2014
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ECONOMIC Economic The Italian economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of them family-owned. Italy also has a sizable underground economy, which by some estimates accounts for as much as 17% of GDP. These activities are most common within the agriculture, construction, and service sectors. Italy is the third-largest economy in the euro zone, but its exceptionally high public debt and structural impediments to growth have rendered it vulnerable to scrutiny by financial markets. Public debt has increased steadily since 2007, topping 135% of GDP in 2015, but investor concerns about Italy and the broader euro-zone crisis eased in 2013, bringing down Italy’s borrowing costs on sovereign government debt from euro-era records. The government still faces pressure from investors and European partners to sustain its efforts to address Italy’s longstanding structural impediments to growth, such as labor market inefficiencies and tax evasion. In 2014, economic growth and labor market conditions continued to deteriorate, with overall unemployment rising to 12.7% and youth unemployment around 40%, but Italy began to recover in 2015, with marginal growth and a slight reduction in unemployment. cia.gov
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ENVIORNMENTAL Natural Resources: Coal, Mercury, Zinc, Marble, Sulfur, Pumice, Fish, Natural Gas and Crude Oil Reserves Climate: Alpine in Far North, Hot, Dry in South; Mediterranean Terrain : Rugged and Mountainous, Some plains, Coastal Lowlands
Natural Hazards - Volcanism: Mt Etna (Etna Sicily) - Mt. Vesuvius (Naples) - Mt Stromboli (Stromboli Island) Other Hazards range from Mudslides, Flooding, Avalanches, Landslides and Earthquakes Natural Hazards - Volcanism: Mt Etna (Etna Sicily) - Mt. Vesuvius (Naples) - Mt Stromboli (Stromboli Island) Other Hazards range from Mudslides, Flooding, Avalanches, Landslides and Earthquakes
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POLITICAL
POLITICAL Italy is a Democratic Republic based on a system of civil law. The Chief of State represents national unity and has an important role in the political arena as a mediator and guarantor. The Prime Minister is the head of the government, being president of the Council of the Ministers.
RELATIONSHIPS - Has a very strong democratic principles set -Close ties with the Us -Possibly gaining political and economic growth with US alliance -Nov. 2016 signs of social unrest when protestors clash with Police in Florence
RISKS - Monetary funds have been allocated towards economic concerns rather than environmental risks - Corruption to be high - Anti-Euro sentiments - Rise of Terrorism and organized crime
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BUSINESS ETIQUETTE MEETING
- Hugs and Kisses are common among friends
- It is likely Italians will ask personal questions relationships are important to Italians
- Upon meeting, one must shake hands with everyone
- Keeping the knife and fork in hands while eating through out the meal
EATING
- Being drunk in public is not socially acceptable
- Making sure to keep knife and fork in hands while eating at all times
- Business is usually conducted over long lunches
- Keeping elbows above the table and not leaning against
- Meals are usually finished with an espresso
- Bread left upside down is disrespectful and bad luck
BUSINESS
- Written form Overcoming language barrier
- Italians are intuitive it is best to make an effort and to ensure that your Italian colleagues like and trust you
- Appointments are mandatory and should be made in writing (in Italian) 2 to 3 weeks in advance
- In the north, punctuality is viewed as a virtue and your business associates will most likely be on time
- Decisions are not reached in meetings. Meetings are meant for a free flow of ideas and to let everyone have their say
STATE OF APPAREL IN THE INDUSTRY 1 of the main leading manufacturers of textiles, being second to china
â‚Ź50.5 million euro ($57m Usd) -2% decline in volume and value of apparel and textile sales
high labor costs being
$24 per hour
Italian products of the textile and apparel industry are known worldwide, which is why the rely heavily on their reputation for higher quality, which lower priced manufacturers cannot compete with. This sector has attracted a great deal of attention because it is rare for a wealthy and developed country to specialize heavily in fashion-oriented as well as semi-customized industrial products and base its production system on small and very small companies. Italy's renowned textile industry is changing dramatically. Despite increasing competition from newly industrializing countries, Italy’s textile industry has continued to be an important contributor to the domestic economy. Exports of textiles destined to 28 EU member countries in the January-April period grew by 8.2 percent, accounting for 55.3 percent of total exports, while exports to other countries decreased except only for the positive performance of the U.S. market.
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fibre2Fashion
TRADE AGREEMENTS TAFTA Transatlantic Free Trade agreement between the US and Europe resulting in economic growth and lower tariffs, stricter guidelines for intellectual property in the fashion industry
TEC Economic council for Europe and
United States regarding apparel industry, Petrol conservation, trade cooperation,and technology
GATT Regulates international trade to
reduce tariffs and remove trade barriers State department
TRANSPORTATION SEA: Italy had 467 merchant vessels totaling 8,499,248 GRT (10,383,988 DWT). Genoa and Savona on the northwest coast and Venice on the Adriatic handle the major share of traffic to and from the northern industrial centers. Naples, second only to Genoa, is the principal port for central and southern Italy, while Livorno is the natural outlet for Florence, Bologna, and Perugia. Messina, Palermo, and Catania are the chief Sicilian ports, and Cagliari handles most Sardinian exports.
AIR: 135 airports, 96 with paved runways. Italy's one national airline, Alitalia, which is almost entirely government-owned, maintains an extensive domestic and international network of air routes. Rome's Fiumicino and Milan's Malpensa and Linate are among the most important airports, being served by nearly every major international air carrier.
LAND: Italy's highway system, one of the world's best, in 2002 totaled an estimated 668,669 km (415,511 mi) of paved roads, of which 6,460 km (4,014 mi) were expressways. These expressways carry heavy traffic along such routes as Milan-Como-Varese, Venice-Padua, Naples-Salerno, and Milan-Bologna-Florence-Rome-Naples. A major highway runs through the Mont Blanc Tunnel, connecting France and Italy. In 2002, there were an estimated 32 million passenger cars and 2.9 million commercial vehicles.
RAIL:
Italy maintained a total railway trackage of 19,786 km (12,295 mi). The government owns and operates 80% of the rail system, the Italian State Railway Nation Encyclopedia
108,223 SUPPLIERS Brunello Cucinelli- Women's Knitwear Piazza Martiri della Liberta', 6070 Corciano (Perugia) Tel: [+39] 075 529481 Brunello Cucinelli USA Inc. and Net-a-Porter Benind S.P.A.-mens and boys clothing Via Villa Minelli 1Ponzano Veneto, 31050 Phone: 39-0422-519-111 Bennetton Mexicana Superga S.p.a. - footwear Via Verolengo 20, Turin Tel: [+39] 011 221676 Nordstrom and DSw
GARMENT FACTORIES - IDEA MODA SRL Padova , ITALY - SIGMA GI SPA Scandicci, ITALY - MAGLIFICIO ROSSI IDEE MODA ISTINTI Cardano Al Campo, ITALY
PORTS
APPAREL IMPORTED - textiles - clothing
EXPORTED - clothing - footwear -handbags
SHIPPING COMPANIES
Citavecchia ny,ny 181 Km away from Bruello $2,367.25- $2,616.44 19 days
Caratello SRL Via Bruges, 61/4, 59100 Prato PO, Italy +39 0574 562473
Venice NY, NY 41 Km from Benind S.P.A. $2,976- $3,289 22 days
Coscon Italy SRL 41 Ponte Morosini, Genova, GE 16126, 16126 Genova GE, Italy +39 010 27071
Genova ny,ny 186 Km from Superga $2,265 - $2,494 19 Days
UASAC Via XXIV Maggio, 26, 19124 La Spezia SP, Italy +39 0187 020111
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CONCLUSION COUNTRY RISK RATING A3 Changes in generally good but somewhat volatile political and economic environment can affect corporate payment behavior. A basically secure business environment can nonetheless give rise to occasional difficulties for companies. Corporate default probability is quite acceptable on average.
BUSINESS CLIMATE RATING A2 The business environment is good. When available, corporate financial information is reliable. Debt collection is reasonably efficient. Institutions generally perform efficiently. Intercompany transactions usually run smoothly in the relatively stable environment rated A2. Global Edge Rating
RISKS
- planning production accordingly in june/july for vacation time in august - RECENT CHINESE WORK FORCE, WORKING WITH NO SET WAGE - WEAK PROFITABILITY OF SMALL COMPANIES AND BANKS - INADEQUATE PRIVATE AND PUBLIC INVESTMENT
BENEFITS
- known for their luxury crafted goods for many decades - GOOD RELATIONSHIP WITH US - VARIETY OF TOURISM ASSETS - PLAYS AN IMPORTANT ROLL IN INDUSTRY
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Apparel and textile classifications that are best suited for production in Italy is that they are well known for their craftsmanship along with the high quality of their products. The best products to produce here are leather goods, varying from handbags to footwear due to their accessibility to the fabric. Risks involves would be the current controversy of Chinese workers working in factories with very little pay. As well as the factories being in extremely close quarters, residing mostly in the city Prato. This being something to reflect on for companies looking to source from Italy. The overall benefit being the country is well versed diplomatically with the US and making hand crafted products.
WORKS CITED “Minimum Wages in Italy.” WageIndicator.org. N.p., n.d. Web. 4 Nov. 2016. “Insight: Italy’s Chinese Garment Workshops Boom as Workers Suffer.” Reuters. Thomson Reuters, 2013. Web. 4 Nov. 2016. “Italy Trade, Exports and Imports.” World, US, China, India Economy, Investment, Finance, Credit Cards. N.p., n.d. Web. 6 Nov. 2016. “Classifying Textile Apparel for Import and Export.” - GOV.UK. N.p., n.d. Web. 7 Nov. 2016. BBCNews. “Italy - BBC News.” BBC News. N.p., n.d. Web. 7 Nov. 2016. “CIA - The World Factbook.” CIA - The World Factbook. N.p., n.d. Web. 7 Nov. 2016. “Italy.” OEC. N.p., n.d. Web. 8 Nov. 2016. “Il Galateo: Italian Manners and Etiquette.” ITALY Magazine. N.p., n.d. Web. 7 Nov. 2016. “Home.” Italy. N.p., n.d. Web. 9 Nov. 2016. Hsbc. “A Region of Opportunity.” HSBC Global Connections. N.p., 29 Aug. 2016. Web. 8 Nov. 2016. AleksejHeinze. “Italy.” Business Culture. N.p., n.d. Web. 9 Nov. 2016. Bodmer-Altura, Textile-future By Virginia F. “News.” A Glance at the Italian Textile and Clothing Industry. N.p., n.d. Web. 9 Nov. 2016. Made-in-italy.com. “Italian Ready-to-Wear Apparel Manufacturers.” Italian Fashion Wholesale: Ready-to-Wear Apparel Manufacturers. N.p., 2010. Web. 8 Nov. 2016. “WPS - Index of Ports in Italy.” World Port Source. N.p., n.d. Web. 8 Nov. 2016. “Encyclopedia of the Nations - Information about Countries of the World, United Nations, and World Leaders.” Encyclopedia of the Nations - Information about Countries of the World, United Nations, and World Leaders. N.p., n.d. Web. 8 Nov. 2016. “Global Insights.” Italy: Risk Assessment GlobalEDGE: Your Source for Global Business Knowledge. N.p., n.d. Web. 9 Nov. 2016. “Bellissima: Italian High Fashion Featured In Forthcoming Exhibit.” Forbes. Forbes Magazine, n.d. Web. 6 Nov. 2016. “Italy Textile Industry Overview | Italy Textile Sector Overview.” Italy Textile Industry Overview | Italy Textile Sector Overview. N.p., n.d. Web. 10 Nov. 2016. https://chemicalwatch.com/50913/italian-textile-suppliers-join-force-to-promote-sustainability http://0-web.a.ebscohost.com.library.scad.edu/bsi/pdfviewer/pdfviewer?vid=6&sid=2d7c10 49-db7b-4908-8b3a-6ed13c23104e%40sessionmgr4007&hid=4207
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CIAO
FALL 2016