Macro Environmental Analysis Of Italy

Macro Environmental Analysis Of ItalyPolitical aspectsThe Italian politics and government atomic number 18 a fusion of democracy and republic, with passels representatives in the parliament ruling the country. Italys Chief of state is President Giorgio Napolitano. Premier look Silvio Berlusconi is the head of the state in Italy. He administrates a multi-party scheme for lucky running of the policy-making activities. Italy was a founding extremity of the European trades union (EU). Today Italy is a member of many significant internationalist organsations deal MIF, UN, G8, NATO, OECD, GATT/WTO or the OSCE. Italy has been a member of WTO since 1995 and it is as well as significanceant to say that wholly EU member states are WTO members. So Italys trade policy is or so the same as that of another(prenominal)wise members of the European Union. This fact makes clear that WTO barter partners bring less problems in trading because of the removal of solely barriers to int ernational trade in goods and services.Demographical aspectsItaly has developed into an industrial country, which is divided in twain parts. The first part is the industrial developed north, which is dominated by semiprivate companies. The second part is the agricultural south. The unemployment in the south is pretty risque and it is clearly to see that this part of Italy is less developed. The Gross Domestic intersection (gross domestic product) is cardinal of the most important economic indicators. For Italy the gross domestic product is $1.823 trillion in 2008. But one has to keep in mind that this number does not refer to the race. If one wants to take in this aspects one should look at the gross domestic product (PPP). For Italy this is $31,300 this means how much the average person living in Italy hast to spend. As an investor this number might become very handy because one can see how much money a country has to cancel out in luxury goods. Instead of being able to affo rd ones grassroots needs. The real GDP out harvest rate in Italy achieved an amount of -1% in 2008. The master(prenominal) industries in Italy are tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics. The main resources of Italy are mine products identical coal, zinc, natural gas and a uncouth oil reserves.Macro environmental analysis of IndiaPolitical aspectsIndia is a democracy. The multitude of India elect their governments at all levels (Union, State and local) by a outline of universal adult franchise popularly known as peerless man one vote .The central government exercises its broad administrative powers in the name of the President, whose duties are largely ceremonial. The constitution designates the governance of India under two branches namely the executive branch and Real national executive power is centered in the Council of government ministers, led by the Prime Minister of India.India suffered political instability for a few years due to the adversity of any party to win an absolute majority in Parliament. However, political stability did not change Indias economic course though it hold up certain decisions relating to the sparing.Membership of international organizationsADB, AfDB (nonregional member), ARF, ASEAN (dialogue partner), BIMSTEC, BIS, C, CERN (observer), CP, EAS, FAO, G-15, G-20, G-24, G-77, IFAD, IMF, IMO, Interpol, IOC, LAS (observer), NAM, OAS (observer), PIF (partner), SCO (observer), UN, UNESCO, UNWTO, WFTU, WHO, WMO, WTOInternational RelationsInternational dealings ships amidst India and a lot of the countries in our origination have been relatively good. mint PolicyIndia is a member of the man Trade ecesis and its predecessor the General Agreement on Tariffs and Trade (GATT). While act in its council meetings, India has been crucial in voicing the concerns of the developing world. For instance, India has continued its reverse to the inclusion of such matters as labour and environment issues and other non-tariff barriers into the WTO policies.patronage reducing import restrictions several times in the 2000,India was evaluated by the dry land Trade Organization in 2008 as more restrictive than comparable developing economies, such as Brazil, China, and Russia. The WTO in addition identified electricity shortages and incapable transportation infrastructure as significant constraints on trade. Its restrictiveness has been cited as a factor which has isolated it from the global financial crisis of 2008-2009 more than other countries, purge though it has reduced ongoing economic crop.Demographical aspectsIndia has a add population of 1,17 billion peck in 2009 and upriseth rate of 1.5 % in 2009 with an average age of 25 years.India has a lot of young people and with a Birth rate of 21.76 births/1,000 it has the highest birth rate of the three countries. small-scale-minded over a quarter of the population in India li ves in citys with 29% this is relatively suffering. However the degree of urbanisation in india is 2,4% wich is also the highest urbanisation rate of our three countries.The labour force in india is the second largest in the world with 523.5 million people in 2008 it is also the biggest of our three countries. in that respect is a lot of difference in commandment levels in india.thither is a sinewy line between really high education and people that are not or poorly educated.Comparison between Italy and IndiaPolitical aspectsIndia is a democracy, Italy is a fusion of democracy and republic.This means that twain countries are free and people who live there make the decisions.The people of India elect their government by a vote, which have the function of a President.Italys leader is President Giorgio Napolitano and Premier Minister Silvio Berlusconi.India is one of the major producing countries of coal. It also has significant deposits of iron, manganese, mica, bauxite, titanium , bromine, natural gas, diamonds, petroleum and limestone.The natural resources for Italy are mainly mined products like coal, zinc, natural gas and a crude oil reserves. India is not a member of the EU like Italy, which was a founding member of the EU, nevertheless international relationships between India and a lot of other countries have been relatively good.Demographical aspectsIndia has a population of 1.166.079.217 habitants. In comparability Italys population is 58.000.000. apart(predicate) from the major difference in population, the demographical aspects for India and Italy are unequal. India has a population growth rate of 1.548% whereas Italy has a growth rate of -0.047%.The population in India is rather young in comparison with the population of Italy.In year 2005 Indias urbanization had an annual rate of 2.4%, Italy only 0.4%.These facts show us that there are a lot of differences between the two countries. sparingal aspectsAs an economical indicator, often it is reffe red to the Gross Domestic Product (GDP).For India the GPD is $3.297 trillion with an annual growth of 6.7%. In Italy this amount is $1.823 trillion with a clear smaller growth rate of -5.1% per year. both countries have in common that most of the GDP is made in the service celestial sphere. In Italy the service sector makes up 71% of the total GDP while in India it is 53.4%. Italys major exports are precision machinery, motor vehicles (utilitaries, luxury vehicles, motorcycles, scooters), chemicals and electric goods, but the countrys more renowned exports are in the fields of food and clothing. Indias major export commodities include engineering goods, petroleum products, chemicals and pharmaceuticals, gems and jewellery, textiles and garments, agricultural products, iron ore and other minerals.Italy and India in comparison to The NetherlandsPolitical aspectsIn the Netherlands the form of government is not similar to the ones from India or Italy. It is a parliamentary representat ive democratic constitutional monarchy state. The administration constitutionally consists of the Queen and the Cabinet Ministers.By the early eighties the Dutch public assistance state had become the most extensive social security dustIn the world but the welfare state came into crisis when spending rise due to dramatic high unemployment rates and poor economic growth. The centre-right and centre-left coalitions valued the Dutch welfare state to create new jobs and to bring the reckon deficit under control. So that they reduced social benefits, lowered the taxes and deregulated the businesses. With these solutions the sparing was recovered and the budget deficit and unemployment were reduced considerably.The Netherlands has a total of 11 Parties and the major political parties are CDA (Christian Democratic Appeal), PvdA (Labour Party), SP (Socialist Party), and VVD (Peoples Party for Freedom and Democracy). The Dutch Parliament consists of a Second Chamber and a FirstChamber. Both chambers of parliament discuss proposed legislation and review of the actions of the cabinet. The CDA has the most sit in the Chambers.Membership of international organizationsThe Netherlands is an active and responsible participant in the United Nations system as well as other four-party organizations such as the Organization for Security and Cooperation in Europe, Organisation for Economic Co-operation and Development (OECD), World Trade Organization (WTO), and International Monetary line.Trade PolicyIn 2007 the exports of the Netherlands were $457.2 billion. The main export commodities are machinery and equipment, fuels, chemicals and foodstuffs. The Netherlands is a strong proponent of free trade and is a member of international forums like WTO and OECD. The share of international trade in its GDP is more than one hundred twenty-five%. The Netherlands top three export partners are Germany, Belgium and France.Demographical aspectsWith 16.5 Million inhabitants The Nethe rlands have a high population density of almost 400 people per forthrightly kilometres. The birth rate exceeds the stopping point rate with 10.9/1000 people against 8.68 death/1000 population and a very high net in-migration rate with 2.72 migrants/1000 people also contributes to this. Therefore the Dutch population increased by 50% since the 1960s. Lately the population boom is tardily declining. The population is mostly divided in middle-sized cities.Economical aspects between the assorted countriesEconomical aspects of the NetherlandsThe Netherlands has a prosperous and open sparing, which depends heavily on foreign trade. Its economy is also noted for stable industrial relations, fairly low unemployment and inflation and a sizable current account surplus.From 2004 till 2006 the GDP went from about $610 billion up to $670 billion. The GDP per capita in the Netherlands is the highest of the tree parent countries.The country has been one of the leading European nations for at tracting foreign direct investiture and is one of the four largest investors in the US. The pace of job growth reached 10-year highs in 2007, but economic growth fell sharply in 2008 as fallout from the world financial crisis constricted demand and raised the trace of a recession in 2009.Main industriesNatural gas Dutch industry is diversified and includes a variety of businesses that range from manufacturing, mining, and energy business to construction and chemical manufacturing.Economical aspects of ItalyItaly has developed into an industrial country graded by both the World Bank and the International Monetary Fund as the worlds seventh largest economy in USD exchange-rate terms and tenth largest in terms of purchasing power parity (PPP) by World Bank, IMF and the CIA World Factbook. More recently, Italy has faced sluggish economic growth and reduced international competitiveness. Italys economic strength is in the processing and the manufacturing of goods, primarily in small and medium-sized family-owned firms. The country has been less successful in terms of developing world class multinational corporations.Economical aspects of IndiaIndia has had a market based system from 1991 till now. Before that the government blocked a lot of the import/ export products to protect the people. India achieved 9.6% GDP growth in 2006, 9.0% in 2007, and 6.6% in 2008 this probably due to the global economic crisis putting the country on position 28 in the world. The GDP (purchasing power parity) did however grow from $2.816 trillion in 2006 to $3.069 trillion in 2007 to $3.297 trillion in 2008 placing india on position 5 according to the cia world factbook.Most of this (53.4% 2008) comes from the services sector in India.ConclusionWhich country will have the best market to export goods and products to?India is a very interesting country to trade with. The economy is on a strong growth trajectory and predictions are that it keeps growing. all told India has to do is keep their market open and keep on works on improving their infrastructure and educational system, this would also improve their GDP per capita. India has also barely been affected by the economic crisis of 2008/2009Italy on the other hand has had a real problem since the beginning of the crisis, in the EU Italy has taken one of the hardest hits on GDP (PPP) and GDP Growth rate, however, even before the start of the crisis the Italian economy had already been sluggish.In the end, it all depends on what goods and products you are planning to export.Italy has few natural resources because Italy has specialized on industry and building luxury goods and for all this you need materials so exporting natural resources would be best here.In India we would export capital/consumer goods, if the economy keeps growing as predicted than that combined with the fact that the liberalization of import taxes continues also adding a population of over 1 billion people. Makes it one of the biggest pot ence markets in the world at this time.Concluding that both of the countries have their advantages, the EU in Italy and the market potential of India, we prefer India to trade with.Sourceswww.cia.govwww.demographic-research.orgwww.economist.comwww.geohive.comwww.oecd.orgwww.oup.comwww.wikipedia.orgwww.de.statista.comwww.economicshelp.orgwww.wiki.answers.com