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You can choose any country but I recommend (Italy) - Essay Example

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Italy demonstrates characteristics of a late-industrialized economy (process of economic development started in 19th or 20t h century) (Quatraro 2009). The Italian economy retained its slow industrialization even in the late 20th century. Late-industrialized developing economies…
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You can choose any country but I recommend (Italy)
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Download file to see previous pages Even though Europe claims to be having united identity the differences between neighboring countries can be much larger than countries across continents. Italy is diverse culturally, economically and politically (TDS 2012). The culture, administrative, geographic and economy (CAGE) distance framework helps the mangers to identify and assess the impact of distance on different industries.
Cultural distance can impact trade (Ghemawat 2004) and language plays an important role. Italy’s language is unique and even though it is a part of Europe Union, English is not the predominant language in Italy. Italy is homogenous linguistically (TDS 2012). According to Ghemawat trade between countries that share a common language is much higher than between countries without a common language.
Italy maintains political or administrative distance as it focuses on protecting its domestic industries. The government thereby does not encourage foreign direct investment (FDI) due to which cross-border competition is also limited. Competition leads to innovation and creativity but this remains unexplored in Italy. Divided into several regions, Italy has introduced some decentralization to the government machinery but the regional governments still seek additional powers. However, frequent government turnovers have left the political condition quite unstable in Italy. International trade has been impacted due to extensive corruption, massive government debts, and organized crime. The country has been besieged with political scandals. Because of poor government policies and institutional weakness, government involvement tends to be high in sectors such as electricity, farming and telecommunications (Ghemawat 2004). Because of the government policies in Italy cross-border competition is low which hinders growth and development.
Geographically, however, Italy is well positioned as it has a huge coastline and is bounded by countries such as France, ...Download file to see next pagesRead More
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