Executive SummaryBackgroundGeographyItaly is a peninsular country located in Southern Europe. Italy has a total area of 301,340 km2 and has a coastline of 7,600 km. The country’s climate is mostly Mediterranean. 40% of the Italian territory is mountainous. Italy borders Switzerland, France, Austria and Slovenia. Brief History of ItalyItalian dictator Benito Mussolini rose to power around World War I and was in favour of Fascism. He started a fascist movement in 1919 and became prime minister in 1922. Mussolini allied with Hitler during World War II, but he was killed shortly after the German surrender in Italy in 1945. National poverty, resource deficiencies and poor leaders, plagued Italy for quite some time. Marshal Pietro Badoglio was appointed PM in Mussolini’s place and both the fascist militia and most laws enacted by the regime were repealed. Italy was a monarchy until King Umberto II, when the monarchy was abolished by popular referendum and a constituent assembly was elected to draft a constitution. Italy has been a democratic republic since 2 June 1946.Modern PoliticsThe President of the Italian Republic is the head of state of Italy. He represents national unity and guarantees that Italian politics comply with the Constitution. The president’s term of office lasts for seven years. The 11th President of the Republic, Giorgio Napolitano, was elected on 10 May 2006, and elected to a second term for the first time in Italian Republic history, on 20 April 2013. On 31 January 2015, Sergio Mattarella, was elected as president. Italy also has a Prime minister. Paolo Gentiloni Silveri is an Italian politician who has been Prime Minister of Italy since 12 December 2016. Gentiloni is a member of the Democratic Party. He previously served as the Minister of Communications from 2006 to 2008 and then was the Minister of Foreign Affairs from 31 October 2014 until December 2016, when president Sergio Mattarella asked him to form a new government.EconomyResourcesItaly is one of the world’s leading economy and industrial nations. Italy produces lots of industrial minerals such as cement and marble. Their metal industries produced copper, iron, steel, lead, and zinc, which are important for the manufacturing industry. Italy’s main weakness is its lack of resources. Italy has few natural resources, and most raw materials needed for manufacturing are imported.Exports Italy is the ninth largest exporter in Europe. Italy has created a niche in the global marketplace for premium products and they are known for brands such as: Lamborghini, Armani and Prada. Italy’s main exports are machinery (18%), metals and metal products (13%), along with clothing, footwear and motor vehicles. About 56 percent of Italy’s products are exported to other European Union countries. The largest importers of Italian goods are Germany, France, United States, Switzerland, and Spain. Italy’s total exports were valued at 547.5 billion USD in 2015.Imports Italy imports fuels that represent 17 percent of the total imports, motor vehicles, representing around 10 percent, raw minerals, also 10 percent, chemicals with a 9 percent import rate, food, with a 7 percent rate and electronic devices, with an 8 percent rate. Italy imports lots of fuel and oil because they have few oil deposits. Since they lack natural resources, they must import them in order to manufacture goods. Italy’s total imports were valued at 411.05 billion USD in 2015.Trade Partners Italy’s 3 largest trading partners are Germany (12.6% of total Italian exports), France (10.5% of total Italian exports) and United States (8.8% of total Italian exports). Their largest exports to these 3 countries were metals and motor vehicles.Trade Agreements Italy’s main trade agreements are: the European Union (EU), the World Trade Organization (WTO), the Organisation for Economic Co-operation and Development (OECD), the Organization for Security and Co-operation in Europe (OSCE) and the North Atlantic Treaty Organization (NATO). Italy’s most prominent trade agreement is the European Union (EU). The major reason the European Union was set up is to make it easier for European countries to buy and sell things to each other. Also certain border controls have been relaxed, making it easier for Europeans to move around more freely inside the Union. The EU regulates how many hours are allowed to be worked in a week, as well as health and safety rules. The European Union is based in the Belgian capital Brussels. Each country has representatives in the EU, as well as ministers for different sectors, such as for farming. The European Parliament decides whether suggestions from the European Commission should be made into new laws. It helps to decide the EU’s budget as well as making sure that all parts of the EU are working fairly. Members of the European Parliament (MEPs) are elected every five years from all the EU countries. Every six months a different country gets the presidency of the EU. The EU has benefited Italy. The EU invests in all of its participating countries and in 2015 the EU invested 12.338 billion Euros into Italy. The money helps fund programmes and projects, such as building roads, subsidising researchers and protecting the environment.Trade with CanadaCanada and Italy are like minded countries on key global issues and are partners in a range of institutions such as the UN, G7 and NATO. In 2013, two-way trade between Canada and Italy was at a total value of $10.5 billion, making Italy our 8th largest trading partner. Canadian exports to Italy increased by 14.3% to almost $2 billion in 2013. Canadian exports went up by 113% in 2014 making Italy, Canada’s 7th largest export market in 2014. In 2013, Canada and Italy introduced the Canada-Italy Innovation Award. It is for experts to work together on projects in the fields of science, technology and innovation.Economic Trends since 1990 In the 1990s, the Italian government was fighting to lower the internal and external debt, liberalise the economy and reduce government spending. However, the main problem which plagued the 1990s, and still plagues the economy today, is tax evasion and underground “black market” business, whose value is an estimated 25% of the country’s GDP. Although there is governmental corruption, Italy is still one of the world’s leading economies and they have carved out a niche for high end products in the automotive, clothing and footwear industries. Working in ItalyRules and Regulations There is no minimum wage in Italy. The amount one is paid is agreed upon through collective bargaining agreements on a job to job basis. Although according to Article 36 of the Constitution the wages must be high enough to provide a minimum subsistence for the worker and his family. Around half of the employees in the country are covered by a collective bargaining agreement, where wages are always set. Workers Rights The Italian Labour Union or UIL is a national trade union center in Italy. It was founded in 1950 and it represents almost 2.2 million workers. Italy also has separate unions for teachers, bankers and many other jobs. They also had the Italian Confederation of Workers’ Trade Union, which was in place before the UIL.Migrant Workers Italy welcomes many migrant workers. In 2005 they were home to 3,035,144 migrant workers and that number has stayed stagnant along with the population. The migrant workers are 51.1% male and 49.9% female. Most migrant workers are between the ages of 19 and 40 and they represent 64.4% of the migrant workers in Italy. For the most part, migrant workers do labour work in agriculture, specifically in tomato fields. To become a migrant worker in Italy you must apply for a Visa and provide proof of an employment contract, a current bank statement of the latest 6 months and an Income Tax Return (ITR) form.Canadians in Italy Citizens of Canada do not need a visa to enter Italy for up to 90 days if the purpose of their trip is tourism or business related. Italy has a many visa options, the most common ones are for business, family reunion, independent work, religious reasons, study and tourism. Italy requires no vaccinations for entry. This includes the Vatican and Holy See. Most Canadian physicians will suggest vaccines depending on how long you plan to be away and which areas of the country you’ll be visiting. It is recommended to visit a physician at least six to eight weeks before traveling so the vaccine has time to be effective. Italian customs grants duty-free entry of household items, if the person is registered as a resident and if they are imported within six months of moving. Those with resident status may also import a motor vehicle duty free. Canadian education is not valued differently than an Italian education, the only issue with Canadian education is the language barrier. A Company Operating in Canada and Italy Lamborghini is an Italian brand and manufacturer of luxury super cars and sports cars based in Sant’Agata Bolognese. The company is owned by the Volkswagen Group through its subsidiary Audi. Ferruccio Lamborghini founded Automobili Ferruccio Lamborghini in 1963 to compete with established companies such as Ferrari. The company gained wide recognition for their powerful yet stylish vehicles and had immediate success. Other than their headquarters in Italy, they have many dealerships in Canada, in cities such as Toronto, Montreal, Vancouver, Calgary and many more. They have dealerships located in Canada due to prestige and popular demand. The large issues that Lamborghini encounters when doing business in both Canada and Italy are, taxes, duties and customs. Every Lamborghini is assembled by hand in Italy and then shipped out to Canada. A lot of money is spent towards duties and customs to get the vehicles into Canada. Lamborghini must also abide by corporate tax laws and each dealership must pay upwards of 38% in taxes annually. Current News Story Lamborghini has recently seen headlines due to the upcoming release of an all new SUV. This is a beal deal for Lamborghini as they have not been in the SUV market since the 1990s when they released the boxy LM 002, which was criticized for being too similar to the Hummer H2. The all new Lamborghini SUV will be called Urus and will have a base model price of $200,000 CAD. The Urus can go from 0 to 100 kilometres per hour in 3.6 seconds and has a maximum speed of 305 kilometres an hour. Lamborghini boasts that it is “the fastest SUV in the world.” They will be entering a market of high end SUVs that is currently dominated by the Mercedes-Benz G-Class and Bentley Bentayga. Luxury SUVS are following a mass market trend. SUVs are the fastest growing segment of the car market. SUV sales have tripled in a decade from just under 8 million units in 2006 to nearly 26.5 million units last year. SUV sales are forecast by IHS Automotive to grow by another 28 per cent to over 34 million units by 2020.Italy’s FutureAlthough Italy has a large economy and a surprisingly large trade surplus, their economy has been stagnant for many years and it will continue on this trajectory. Their population has not been growing rapidly like many other nations and for the past 7 years they’ve had a negative yearly population growth rate hovering around -0.1%. Italy’s population has grown less than 5% from 57 million to 59.2 over a 30 year period from 1985 to date. They will continue to strive in the automotive and clothing industries, but it will be hard for Italy to keep up with many nations due to the lack of natural resources such as water. Fresh water will be a large commodity in the future and that is something that Italy lacks. For reference, Canada has 40,000 cubic km of fresh water, while Italy only has 58 cubic km. Italy’s working conditions will improve as workers unions will work towards getting a universal minimum wage. The working conditions have been gradually improving each year, and Italy is one of the only developed countries in the world to not have a minimum wage. Another main reason that Italy will stay stagnant for many years to come is due to the help they get from the EU. If Italy were not a part of the EU then their economy would shrink. The EU provides capital funds and helps with many issues in Italy. Italy’s economy will also take advantage of the Euro. The Euro has always been one of the superior currencies and this trend will continue, which will greatly help Italy’s economy from shrinking. As for Lamborghini, they will continue to strive in the automotive and supercar sector. The success of their upcoming SUV will greatly determine whether or not they can grow even more as a company. Lamborghini will follow their current trend and will keep increasing in size. Lamborghini will continue to grow because they are always innovating and reaching new heights never reached before. The one problem that Lamborghini will encounter is the global shift to electric vehicles. Although, this will not greatly affect them, as their cars will still be sought after and they are planning to release electric cars in the future.