The Automotive Sector in Italy

Although there has been some success on the Adriatic Coast the policy has failed. Plants such as Alfa Romeo did set-up but these were only branch plants, which never developed links to the local economy & created relatively few jobs. Measures have not been at all effective in reducing regional inequality. A lot of money has been spent but has had little effect in establishing an industrial base. The area is over-dependent & incapable of self-generating growth. Emphasis has instead shifted to the selective encouragement of small & medium sized firms. Over time a new Part of Italy has emerged and is called The Third Italy and has become prosperous & successful as it has created industrial districts with lots of small firms. High levels of education & communication, low land prices and good local enterprise, have also helped the area.

With the upcoming Presidential election, there is a very real possibility of big political challenges; as well as, major changes to international trade policies facing the American Automotive Companies. Political changes, locally and abroad, are having an effect on the automotive industry. Britain recently voted to exit the European Union; this event, which is being called Brexit, is having a ripple effect across the world. The full result of Brexit won’t be known for two years or more, but with the automotive industry having such a large presence in the U.K, an anticipated change is in full effect. In general, for the next two years, global automakers will need to pay attention to the market; be prepared for unanticipated changes; and ready for the possible need of contingency plans. This is especially crucial as negotiations take place between Britain and the EU. Ian

On June 1946, 54 percent of Italians had voted to abolish the royal monarchy and they royal family is expelled from the country to avoid uprisings. Now, they had to create an Italian Constitution, in which was put into the hands of the Constituent Assembly. This Assembly was made up of the Christian Democratic Party, the Socialist Party, and the Communist Party. World War II caused high inflation in Italy and they did not stabilize their economy until 1947. However, once the economy was stabilized a time called the “Italian Economic Miracle” emerged. This time was of great economic growth and urbanization. Italy was in ruins after the second world war but it was given $1,5000 million from the US’ Marshall Plan. This was due to the fact they were seen as a democratic ally and the US was afraid a communist country would take Italy. This money allowed Italy to build up its steel industry which happened to come at a crucial time when the Korean war was in need of steel products which boosted the economy. This sudden expansion in industry made Italy a safe haven for immigrants. Due to the sudden influx of people, suburbs and cheap apartments became common. The common life for people became much better as products become cheaper and more

After World War 2, Italy was rapidly transformed from an agriculture based economy into one of the world’s most industrialized nations. It also became a leading country in world trade and exports.

The Northern part is where the wealthier people live and the Southern part is where the more agricultural dependent is. The northern area is more industrialized with jobs such as tourist services, automotive, and manufacturing. The most popular job in the Southern area is owning a farm and producing produce. Italy exports and imports many products. Their main export is machinery equipment because of the high quality of the industrial jobs of Italy. Their main import are fuels because they don’t have a high amount of natural resources left.

The luxury cars industry is one of the most prestigious mass-production industries in Germany. The country is recognised by many as the native land of the automobile; in fact in 1901 900 vehicles a year were already produced.

The southern European country of Italy is relatively small and is located in Europe. Italia is in fact smaller than the state of Texas but don’t underestimate this little European country. In spite of the fact that Italy is smaller than Texas, it has a larger population of people and this was established about a couple years back. “The CIA estimated the population of Italy in July 2015 to be 61,855,120, which put it at number 24 in population among the 238 countries, dependencies and territories of the world.” (“Italy” 387-406). Tourists and recent statistics on inhabitants are obviously excluded from the population census, but the number of citizens in this European country remains larger than The Lone Star State. Finding

Italy has been known for its unstable government for years. The country has a huge public debt, issues with organized crime, high unemployment, as well as disparities between the industrialized North and less developed South. The country with its new Prime Minister is trying to improve the situation in Italy and has already approved some important reforms, to improve the political and economic system..

Italy, positioned in southeastern Europe, is a beautiful country that is faced with high unemployment, corruption and massive debt. Although it appears to be one of the most developed countries in Europe, Italy is somewhat of a laggard in globalization. Ranking twenty-third in world population, Italy stands at 56,126,212 people as of July 2009. The north and south seem to be split in economic terms with the north being well developed industrially and the south facing high unemployment and poverty. Italy is a democratic republic that replaced a monarchy back in 1946. Although it ranks seventh in world GDP and public debt and attracts millions of tourists every year, its current debt to GDP ratio continues to skyrocket. World economists

Administrative differences in Italy are the most important to look at. The “constitution provides the basic freedoms of thought, speech, press and the right to work (Welcome to Italy)”. Furthermore, workers have the right to form and join unions as well as the right to strike. As a result labor unionization is very high; in 2002, 40 percent of Italy’s labor force was unionized (Italy - Labor). Geographic differences also increase the costs and risk of doing business. Italy is divided into geographic and administrative regions, some of which are autonomous and have different regulations (fig. 3). Generally however Italy is divided into two regions the Northern Region and the Southern Region. The north is characterized by high industrialization and urbanization while

The terrible internal economies control. The countries in euro area, especially Portugal, Ireland, Italy, Greece, and Spain lost their control over the domestic financial situation. Specifically, Greece had long standing financial problems. The government spent largely on the social welfare, and had a great number of public servants who had extremely generous wage and pension benefits. Besides, the government had little control over its budget deficit, leading a long standing financial budget overrun. In Ireland, the estate bubble greatly destroyed government tax income and consumption power of public. Portugal’s lasting recruitment policies led to a great number of redundant public servants. The Italian economy suffered from the high unemployment rate and high tax rate, and had a slow growth in recent years.

Now Italy has many problems in economic sector. The first is that it has very high debt level. Because of it Italy now is in crisis situation. Also Italian living standards have a considerable north-south divide. Italy suffers from structural weaknesses due to its geographical conformation and the lack of raw materials and energy resources. The country has an inefficient state bureaucracy, low property rights protection and high levels of corruption, heavy taxation and public spending that accounts for about half of

15 Tax structure of Italy…………………………………………………………………… .16 Trade relationships of Italy……………………………………………………………... 16 Relationship with Canada in terms of trade and aid18

A thorough analysis of the external forces that shaped the global automotive industry in 2009 reveals how the rivalry between established car makers set the stage for some to successfully survive the global recession while others were forced to seek Chapter 11 bankruptcy. A closer consideration of the impact of consolidation, demand and supply, fixed costs, product differentiation, and exit barriers on rivalry within the industry reveals how new entrants and weaker competitors were able to take advantage of environmental opportunities during the recession and gain profit shares. These considerations illustrate the critical importance of analyzing the forces that shape competition in an industry and how such an analysis serves as the

The car industry in Europe is a very competitive environment. Even though some analysts argue that it is a saturated market where no significant growth will take place anymore, the growth figure of 11.2% from 2009 to 2010 in terms of market value implies that there is still significant