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Comparative Analysis of Global Consumers (Italy) - Essay Example

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Author : quincy87

Summary

The United States of America and Italy have been enjoying warm and friendly relations with each other for years. Italy is an important ally in the war against terrorism of the United States…

Extract of sample
Comparative Analysis of Global Consumers (Italy)

Today, the USA and Italy are working together on major economic issues. Both countries are the member of G-8. Italy, having a large population and high per capita income is the United States 10th biggest trading partner, with a joint trade of $42.5 billion, with exports to Italy totaling $11.5 and imports from Italy totaling to $31.0 Billion. The US also had a $19.5 Billion shortage with Italy in 2005 which rose up from 17.4 billion in 2004.

Major transformations can be seen in this trade nowadays. Products such as, office machinery and aircraft are becoming important US exports to Italy. The US's foreign investment in Italy was $33.3 billion at the end of the year 2004.

Two hard years, distinct by a financial slump in Europe and a damaging Euro/ Dollar exchange rate. In 2003, there were the first signs of recovery, which were later confirmed in the year 2004, and it became a solid movement in the early 2005. Once the slump was over the Italian machine tool industry started to run smoothly confirming the positive trends.

This was an important sign; first being because of the trend in the machine tool sector, which was a good sign in the interest of the industry as a whole in the new investment sector. This indicator measures business brightness, the development objectives measured are achievable and the motivation to assemble the financial resources by increasing the risk capital. Another reason is the nature of this sector. With a €4 billion turnover and over more than 35000 jobs, this industry is one of the most important in the world along with the United States, Taiwan, Japan and Germany. The major reason of it is because of its size and the percentage of the products exported.
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