Italian Market, Main Market of Italy

 

 

Italian Market can be defined as the market structure prevalent in Italy which mainly functions along capitalistic lines. Italy, a developed country as the Italian Republic after years of wars and division into many independent nation states and the eventual Italian Unification has the seventh –highest GDP (Gross Domestic Product) in nominal terms and the seventeenth-highest Human Development Index rating in the world. It is a member of the G-8 group of nations (group of eight rich countries or industrialized nations) and a founding member of the European Union (EU), the Council of Europe, Western European Union and the Central European Initiative. It is also a non-permanent member of the United Nations Security Council (UNSC) with effect from January 1st, 2007.

The Italian economy is a capitalistic one and remains into a developed industrial north dominated by private companies and an agricultural based southern part of the country which is far less developed. According to the OECD (Organization for Economic Cooperation and Development), Italy is the sixth-largest exporter of manufactured goods. Most of the raw materials needed by the industrial sector are imported as well as more than 75% of its energy requirements. Over the past decade, the country has pursued a policy of tight fiscal policy which has benefited the country in terms of lower interest and inflation rates. Certain structural reforms to improve the economic performance of the country in comparison to its EU partners have resulted in measures for lightening of the high-tax burden and a overhauling of the rigid labour market and expensive pension system.

Some of the main Italian markets would be:

The Automobile and technological market: The Italian industry is concentrated on products which have high technological content taking advantage of the technological potential of the country and the cultural tradition of high-quality products. One of the natural choices thus would be cars and automobiles which are the major exports of the country. Major brands for motor vehicles would be Fiat Group, Aprilla, Ducati and Piaggio and those for the popular Italian luxury vehicles are Ferrari, Maserati and Lamborghini. Some of the other high technological content products which the country specializes in are chemicals, petrochemicals, electric goods, aerospace and defense technology (Alenia, Agusta) and firearms (Beretta).

Stock Exchange and Money markets: the Italian stock exchange is known as Borsa Italiana (BIT) lists 270 stocks for approximately five different market sectors such as for the big companies called the Blue Chip companies with solid economical and financial infrastructure with market capitalization of over one billion Euro, Star companies or the medium-sized companies, Standard companies which consist of small and medium-sized companies and Mercato Expandi with a market capitalization of at least one million Euro. The principal indices for the BIT are the MIBTEL, MIDEX, S&P MIB, MIB 30. Capital market trends in the field of investment include private equity and venture capital.

Italian food market: Italian trade deficit in agricultural products has been increasing over the years as well as that for the meat sector. Trade deficit for agricultural products stood at 2bn Euros for the first five months of 2002. However, there was surplus in case of olive oils which went up to 102m Euros for the same period. The country specializes in food exports and some of the popular brands are Parmalat, Martini & Rossi and Campari.