The legal system of acountry is the laws and principles of thecountry, how the country operates, andthe rules and regulations expected for citizens of the country to follow. Therisk of investing in a foreign country that has corruption in its system, laws that block investments and trade dealings, frequently finding situations where people’s rightsare violated, can have a costly, damaging effecton your business. It’s important toknow the risks and the unfortunate realities the legal system a foreign country may have. In Italy, the legislative branchhas the power to make laws and that belongs to the parliament.
The members ofthe parliament make amendments to the constitution as well review ing bills made.In Italy, to create a law, the bill needs to the pass Upper and Lower Houses.An agreement must be made by both houses on the bill, and in some cases, thisis the reason that leads bills to be on hold for years. As an investor, it canbe frustrating if bills that can be beneficial towards your businesses or investmentsare stuck in gridlock Legal Information Italy is a part of many international trading agreements and supports trading of goods and services.
Italy is a member of the European Union (EU), the World TradeOrganization (WTO), the Organization for Economic Co-operation and Development(OECD), the Organization for Security and Co-operation in Europe (OSCE) and theNorth Atlantic Treaty Organization (NATO) (Government of Canada, 2017). As a part of the European Union,the members are expected to adapt to the common trade policy (Government of Canada, 2017). Goods and servicesimported to the European Union countries are subject to import tariffs.Depending on importing countries, value-added tax (VAT) in Italy the standardrate is 12%, is applied as well on Goods and services (Government of Canada, 2017). Currently, thatpercentage may increase to 25% in 2018, depending on the performance of the Italianeconomy (Government of Canada, 2017).
As an investorlooking to invest or import goods and services into Italy, it’s important torecord and document all business transactions in your investments for credibility.Tariff charges and tax charges are applied to imported goods and servicesautomatically.This will prevent the risk of losing track money, and not pay governmentlaw taxes.As aninvestor, the political structure should be carefully studied when choosing tomake investments in that foreign country. The political structure is the socialstructure of the country where the society as an institution can manage agovernment. It tells investors the country’s values and beliefs in the system andmost of the time, voice the concerns and issues in the country.
The official constitutional name of Italy is “the ItalianRepublic”. (Italy’s political system: Key things to know, 2017). The forms of governmentItaly is the Republic, Unitary state, Parliamentary republic, ConstitutionalRepublic (Sawe, 2016).The president SergioMattarella is the head of state, however, laws and court rulings are made bythe Constitutional Court. Made up of 15 judges, the president, parliament, andother courts that elect 5 judges each (Italy’s political system: Key things to know, 2017). Italy dividesthe power into three branches, executive, legislative,and juridical (Italy’s political system: Key things to know, 2017). The Council of the Ministers and PrimeMinister Paolo Gentiloni are in charge of the executive branch of Italy (Italy’s political system: Key things to know, 2017). The Italian parliament (Parlamento) is the legislative branch that consists of two chambers.
The Upper house is the Senate of the Republicwith 315 senators over the age of 40, and the Lower house is the Chamber of Deputies with 630 deputies (Italy’s political system: Key things to know, 2017). All members are elected for five-year terms and only extended if the country is currently in awar.Political & International InformationNaturalresources found in Italy are asbestos, barite, coal, crude oil reserves,feldspar, fluorspar, marble, mercury, natural gas, pumice, and pyrite.
(Natural Resources, 2017). The governmentcontrols the mineral industry Businessesthrive in major cities such as the capital city of Italy, Rome, and Milan. Thecapital city of Italy has 67 companies inthe Inc. 5000 Europe (Henry, 2015) The Inc. 5000 Europe, is a list of 5000businesses in Europe that is namedEurope’s Fastest-Growing Companies. Rome’s most successful businesses are inIndustries of real estate, food andbeverage services, and IT services (Henry, 2015).
The northern Italian city Milan is home to the Italian stock exchange and generates about 9% of thecountry’s economic growth (Henry, 2015). The city has 83known companies in the Inc. 5000 Europe (Henry, 2015). The officiallanguage that is spoken in the country isItalian. Most businesses either speak Italian and English. The adult literacy ratebetween the ages 15 and older, is 99. 2% (Italy, Human Development Indicators, n.d.
).Meaning almost every person in the country can read and write. Investments canbe made in a population that has a high literacy rate. A population, thatconsists of individuals that are well-educatedcan experience little to no difficulty when reading and write papers. Encounters with potentialinvestors are made easier when information can be easily understood by apopulation. The major religions practiced in Rome is Catholicism, Christianity.There is also a Muslim immigrant community.
As a foreign investor or business person looking to target a populationof a different country, it is important to know your target audience. Religioncan create disagreements on issues, ethics, politics, and conflict. To ensure that the targeted audience needs and expectations are met, know where thetargeted audience is to boost profits in that area. The risk of blindlyinvesting in an area without knowledgeability of religions and beliefs can offendpeople, lose audience members and their interests, and affect profits. (Heckstall, 2016) Investorslooking to invest in a foreign country can be risky. Investing in any foreigncountry it’s crucial to research covering the background of that country, theeconomics, infrastructure, politics and policies, cultural standards, legal, and international information.
The result of this will minimize andprevent loss of profits and allow investments greater chances of successes inthat country. Italy is located along the Mediterranean Sea near France.Italy experiences hot dry summers and cool rainy winters. Italy’s population ismore than 62 million individuals as of 2017 (Zimmermann K. A.
, 2017), and the lifeexpectancy in the country, if patterns of age-specific mortality rates sincethe time of birth is constant throughout infant’s life, is 83.3 years. With thepopulation consisting more than 62 million individuals as of 2017, 65.
6 percentof the population are internet users. (Italy, Human Development Indicators, n.d.
). This is an advantage by itself becausebusinesses can use the internet as an outlet to advertise and reach out the majority of the population online. The internetis one of the main routes businesses use to expand, invest, advertise andconnect with people. Connecting with people locally and internationally isimperative to the success of businesses. It can build and expand your brand through the websites or ads you create, polishyour brand collateral, and build worldwide exposure that much faster andeffective than other ways.