Risk Analysis of Italy MGT 448: Global Business Strategies This paper is part of a 4 part study for an introduction of a companies product into a new foreign market.

Risk Analysis of Italy

Basic need potential

Italy has a population of over 57 million and does not suck up nearly enough forage to feed the consumers. Italian consumers have found it acceptable to down non-traditional foods, which indicates the need for imported food items. Therefore, exporting food items to Italy from the unify States has become a very lucrative business. One of the acclivitous trends in Italy is prepared foods and ready to eat snacks. The traditional meals have been disappearing from the tables and being replaced with many types of frozen foods that can be purchased in some of the large supermarket chains throughout Italy.

With the rescue increasing year after year in Italy much families have found it easier and cheaper to buy the non-traditional meals for consumption. Also, the patterns indicate more officious life styles and the ability to eat snacks along with the lack of pedestal cooked meals. Market trends indicate that the consumers of the imported products are becoming not only the younger generation but the more realised generation as well.

Foreign Investment

Even though Italy has problems attracting hostile investment, the country does furnish ample opportunities for investment.



The governmental requirements can be a core at times, but the government will work with foreign investors by providing some assistance in dealing with the various, and sometimes confusing, regulations.

Economic Indicators

Balance of Payments

Italy has had an account surplus since 1993. However, in 1999 the surplus reached 6.4 billion, which was down from the surplus, count of 21.8 billion in 1998. Over the last three eld the surplus has been decreasing but the national debt has also been decreasing, as the government is highly concentrated on reducing the debt. The Italian government has sold off some companies, which is also a factor in the...

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