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GCR Report on ITALY Shayona Institute of Business Management (820) Zone 1- Ahmedabad

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GCR Report on ITALY Shayona Institute of Business Management (820) Zone 1- Ahmedabad GCR report on ITALY Shayona Institute of Business Management (820) Zone 1- Ahmedabad PART-I COUNTRY INFORMATION Italy became a nation-state belatedly - in 1861 when the city-states of the peninsula, along with Sardinia and Sicily, at that time united under King Victor EMMANUEL. An era of parliamentary government came to a close in the early 1920s when Benito MUSSOLINI established a Fascist dictatorship. His disastrous alliance with Nazi Germany led to Italy's defeat in World War II. A democratic republic replaced the monarchy in 1946 and economic revival followed. Italy was a charter member of North Atlantic Treaty Organization (NATO) and the European Economic Community (EEC). It has been at the forefront of European economic and political unification, joining the European Monetary Union in 1999. Persistent problems include illegal immigration, the ravages of organized crime, corruption, high unemployment, and the low incomes and technical standards of southern Italy compared with the more prosperous north. And their border country is Austria, France, Holy See (Vatican City), San Marino, Slovenia, Switzerland. People: Nationality: Italian Population: 59 million (2011) Ethnic groups: Primarily Italian, but there are small groups of German-, French-, Slovene-, and Albanian-Italians. Religion: Roman Catholic (majority). Language: Italian. Literacy: 98%. Natural resources: Mercury, potash, marble, sulfur, natural gas and crude oil reserves, fish, coal, arable land Agriculture products: Fruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish Industries: Tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics General Background of Italy The flag of Italy features three equal and vertical bands, making it a tricolor flag. The hoist side has a green band; white forms the center band; and the outer stripe is red. The red and white parts of the flag were borrowed from the official colors of the Milanese flag, and the green was added to represent the Civic Guards of Milan. When hung vertically, the flag is to be rotated 90 degrees. The green is said to represent hope and joy, the white symbolizes peace and honesty, and the red stands for strength and valor. Another interpretation of the Italian flag's colors is that the red shows the violent struggle to become a unified and independent nation, the green symbolizes the landscapes of Italy, while the white represents the snow-capped Alps. POLITICAL IDEOLOGY CURRENT IDEOLOGY: REPUBLIC DEMOCRACY The Italian Republic was established in 1946, after the end of Benito Mussolini's Fascist government during World War II. Throughout the Cold War, Italian politics was under enemy control of Christian Democratic Party on the right and the Socialist and Communist Parties on the left. There were repeated changes of government and Prime Minister, although the parties involved changed little. This situation was altered in the early 1990s following a major political corruption scandal which included many leading politicians and led to the collapse of the main political parties of the postwar period - the Christian Democrats and the Socialists. Under a new electoral system, considered as the Second Republic, new parties emerged and the Italian political landscape was transformed. One new political force was a coalition of mid-left parties which governed from 1996-2001 under Prime Ministers Romano Prodi, Massimo D'Alema and Giuliano Amato. A mid-left government in 2007, led by Mr Prodi, lost a Senate vote on account of its foreign policy. The most significant change under the new electoral system was the emergence of a new mid- right coalition led by Silvo Berlusconi and his Forza Italia Party. This held power from 1994-96 and again from 2001-06. Silvo Berlusconi returned to authority for the third time in 2008, but amid the elevated national debt crisis and following his incapability to secure a majority result on the latest budget, he resigned in November 2011. Former EU Competition Commissioner and economist Mario Monti is the present Prime Minister, heading a caretaker government of technocrats which hopes to restore stability to the Italian economy. Elections are expected to be held early in 2012. Social: Italians trace their gastronomic heritage to Romans, Greeks, Etruscans and Mediterranean peoples who elaborated the methods of raising, refining and storing foods. But dining customs acquired local accents in a land divided by mountains and seas into natural enclaves where independent spirits developed during the repeated shifts of ruling powers that f spreaded Italy from Roman times to the Risorgimento. Despite the different attitudes about eating expressed from the Mediterranean isles to the Alps, Italian foods have points in general. Consider pizza, fast food. Italy, with a population of near 57 million, consists of 20 regions subdivided into 103 provinces that take the names of prominent towns. Each province boasts different foods and wines, which, needless to say, have an inherent affinity for one another. Now, in a world of ever more uniform tastes, Italians retain their customary loyalty to distinctive local wines andfoods. A growing number of these authentic food products has been officially protected under European Union regulations for DOP (Denominazione di OrigineProtetta) and IGP (IndicazioneGeograficaProtetta). The program in Italy is modeled after the successul system of wines of controlled origin, which applies to more than three hundred appellations identified by the initials of DOC (Denominazione di OrigineControllata) and DOCG (the G for garantita or guaranteed) and the recently instituted system of IGT (for IndicazioneGeograficaTipica), which applies to about 120 wines throughout the country. Italy is toothe leading European country for organic foods with near 50,000 farms committed to growing produce by natural methods without the use of chemica. Throughout the centuries, Italy’s population curve has experienced many changes, often in similar development with population movements in other European countries. Roman Catholicism is by far the largest religion in the country, although the Catholic Church is no longer officially the state religion. The effects of a declining population can be opposing for an economy which has borrowed widely for repayment by younger generations; however, a smaller human population has a smaller influence on the environment. Economically falling populations are thought to lead to reduction, which has a number of effects. The Italian economy is determined in large part by the manufacturing of high-quality consumer goods produced by small and medium-sized initiatives, many of them family owned. In education sector, there is a common of students in technical schools that prepare students to work in a technical or administrative capacity in agriculture, industry or commerce. Demographic growth was increasing; the movement of the production edge was supporting not only the rise of population, but also the rise of a wealthier population. Trade & Commerce: Italy Trade: Exports The 2008 recession decreased Italy's global trade volumes significantly. Its export volumes decreased from $546.9 billion in 2008 to $369 billion in 2010. However, the country's economy remained relatively strong and ranked 8th in the world for export volumes. The main exported commodities include: Engineering products Textiles and clothing Production machinery Motor vehicles Transport equipment Chemicals Food Beverages and tobacco Minerals and nonferrous metals Italy Trade: Imports Italy's imports dipped as well following the 2008 recession. The figures dropped from $546.9 billion in 2008 to $358.7 billion in 2010. Italy imports the following commodities: Engineering products Chemicals Transport equipment Energy products Minerals and nonferrous metals Textiles and clothing Food and Beverages Tobacco Italy Trade: Energy Export Italy has a high volume of energy production in its industry sector. Italy exports 3.431 billion kWh of electricity and 667,100 bbl/day of oil and 210 million cu m of natural gas. Through increased energy production, Italy’s trade balance has come down from $78.03 billion in 2008 to $55.44 billion in 2010. Trade Relations: India/ Italy: Italy has a diversified industrial economy, whichis divided into a developed industrial north,dominated by private companies, and a less developed,welfare-dependent, agriculturalsouth, with high unemployment. The Italianeconomy is driven in large part by themanufacture of high-quality consumer goodsproduced by small and medium-sizedenterprises, many of them family-owned. Italyalso has a sizable underground economy, whichby some estimates accounts for as much as 15%of GDP. These activities are most commonwithin the agriculture, construction, and servicesectors. Italy has moved slowly on implementingneeded structural reforms, such as reducinggraft, overhauling costly entitlement programs,and increasing employment opportunities foryoung workers, particularly women. Economic and commercial relations between India and Italy have been growing steadily. Italy is India's 5th largest trading partner in the EU (21st globally) and the 12th largest investor in India. PART-II Industry Study on Steel Industry in ITALY MEANING OF STEEL INDUSTRY : Steel industry, the business of processing iron ore into steel. It is simplest form is an iron-carbon alloy, and in some cases, turning that metal into partially finished
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