ITALY

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ITALY

• Glenn Weaver
• Accountant

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LOCATION

• Peninsula that extends into the Mediterranean Sea
  in Southern Europe
• Area 301,230 sq. km
• Coastline 7,600 km
• Slightly larger than Arizona
• Capital and largest city Rome

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(No Transcript)
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PEOPLE

• Population 57,715,625 (2002 est.)
• 20.6 of U.S. Population
• Population Growth Rate 0.05
• Life Expectancy Rate 79.25 years
• Female 82.63 years
• Male 76.08 years
• Literacy Rate 98 (population age 15 )

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PEOPLE (cont.)

• Ethnic Groups
• Italian (majority)
• Germans
• French
• Others

• Languages
• Italian (majority)
• German
• French
• Slovene

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RELIGION

• Predominately Roman Catholic (98)
• Mature Protestant and Jewish communities
• Growing Muslim immigrant community

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GOVERNMENT

• Democratic Republic (Since June 2, 1946)
• Branches
• Executive President Prime Minister
• Legislative Parliament
• Judicial Constitutional Court
• Legal system based on civil law system, appeals
  treated as new trials, and Italy has not yet
  accepted ICJ jurisdiction

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GOVERNMENT(cont.)

• Chief of State President Carlo Azeglio
• Elected for a seven year term
• Elected by electoral college
• Head Prime Minister Silvio Berlusconi
• Appointed by president
• Cabinet Nominated by Prime Minister and approved
  by the president

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ECONOMY

• Diversified industrial economy
• Approximately same per capita output as France
  and the UK
• Performance lags behind many EU partners
• GDP 1.402 trillion (13.9 of U.S.)
• GNI 1.163 trillion (12.1 of U.S.)
• Ranked 6 in the world.
• GDP Per Capita 24,300 (66.9 of U.S.)
• Inflation Rate 3 (0.02 higher than U.S.)

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ECONOMY(cont.)

• Currency Euro (Introduced January 1, 1999)
• Italian lira (no longer a legal tender)
• Labor Force (23.6 million people)
• Services 63
• Industry 32
• Agriculture 5
• Unemployment Rate 10 (twice that of the U.S.)
• Industries
• Tourism, machinery, iron and steel, chemicals,
  food processing, textiles, motor vehicles,
  clothing, footwear, ceramics, and others.

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ECONOMY(cont.)

• Exports 243 billion
• Engineering products
• Textiles and clothing
• Motor Vehicles
• Production Machinery
• Chemicals

• Imports 226 billion
• Engineering products
• Energy products
• Minerals
• Food Beverages
• Tobacco

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MILITARY

• Military Spending 20.2 billion (7 of U.S.)
• of GDP 1.64
• Branches
• Army
• Navy
• Air Force
• Military Age 18 years old

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CULTURE

• Italians consider themselves as descendants of
  the ancient Romans, not a new people
• Tradition of family center of all Italian life
• Contributions to the world
• Sculptures
• Architecture
• Painting
• Literature
• Music

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BUSINESS

• Types of Businesses (similar to U.S.)
• Unlimited Partnership
• Limited Liability Company
• Public Corporation
• Italian Stock Exchange
• Successful marginal market
• Italian Tax System (very complex)
• Two main classes Direct and Indirect

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IASC

• International Accounting Standards Committee
• Founded in June 1973
• Set international accounting standards
• Discuss international accounting issues
• Italy joined the committee in 1983

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PUBLIC BEHAVIOR

• Always introduced to women and elderly 1st
• Shake hands with everyone in a group
• Italians are very animated when talking
• Greeting people with full embrace is common
• Unacceptable public behavior
• Chewing gum
• Leaning
• Slouching

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BUSINESS DRESS

• Much emphasis, time, and money spent
• Reflects social standing
• Tends to be formal
• Informal is usually a jacket and tie
• Shorts unacceptable in public

• Men
• Expensive well-cut dark suits with nice tie
• Cuff links
• Tie clips
• Stylish watches
• Quality fabrics Silk, etc.
• Cologne is common

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CONVERSATION

• Acceptable Topics
• Italian architecture
• Italian art and films
• Sports (Soccer)
• Italian food and wine
• Italian Landscape

• Unacceptable Topics
• Religion
• Politics
• The Mafia
• Italian stereotypes
• Inquiry of income/job

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INTRODUCTIONS

• First names not used in Italian business
• Personal and professional title constantly
• Gift Giving
• Wait until you receive one first
• Expected for social events to show appreciation
• Should be famous brand name, but small and not
  too expensive
• Gifts of alcohol or crafts from own country good

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APPOINTMENTS

• Relation to business partner is a must
• Punctuality is not much of a priority
• Typical business hours 830 am - 630 pm
• Break 1245-300, business discussed over lunch
• Many firms closed in August for vacation

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OTHER ISSUES

• Tremendous respect for power and age
• Roman Catholic Church plays major role
• Final decisions are slow (months-year)
• Patience in business is important
• Publicly rewarding employees is not done
• Italian business always formal