Analysis & Recommendation Essay Example | Topics and Well Written Essays - 1000 words

Analysis & Recommendation - Essay Example These areas included among others the pharmaceutical companies and chemicals. This area had little competition from domestic companies for a long period. The Italian government helps the multinationals in the process of developing them to become strong Gerschenkronian factors that enhance development. This factor provides room for interesting parallels to develop and grow carrying components of the modern emerging economics (Jackson, 2013, 62). The economic stability dates back to the mid nineteenth century when it was the only South European country to achieve the same by the end of the nineteenth century. Italy qualifies as a long-run host economy following its dynamic in depth. From nineteen thirteen, the growth of the Italian economy came through as a latecomer gradually generating into one of the world’s economic powerhouse. Partially, the sluggish nature of growth at the time was influenced by the nation’s consolidation of industrial model as well as the structure of its capitalistic setting that largely denied foreign investors opportunities for business operations. The first two decades after unification saw the country experience an accelerated rate of economic growth. Analysis of the country’s sectoral attractiveness entails a dynamic analysis. Trends in Italy reveal that they are in tandem with the dominant technological changes in the rest of the world. There are foreign controlled investments especially in the textiles and mining industry that defy the economic waves to remain successful as they respond to technological changes. Other sectors whose stability is strong and attractive to the United States companies include transport and utilities comprising of distribution of water, gas, as well as electricity. Economists attribute this to the ever-increasing demand for expansion of infrastructure. This results from the whole urbanization process that started towards the end of the nineteenth century. In the traditionally foreign dominated chemical sector, the relevance of the sector shifted to petrochemicals, pharmaceuticals, and advanced chemicals. This is a good indicator to American companies that the country embraces a new technological paradigm (Jackson, 2013, 88). Chemicals provide an attractive case for American companies interested in direct foreign investment. Research carried out in two thousand and one revealed that there is a generally weak domestic interest and entrepreneurship in various sectors including advanced chemicals, energy, pharmaceuticals, research and development, as well as other sectors with features of high intensity of technology. This is evidence that companies that engage in foreign investment in these sectors have privileges for application of both medium and high-tech technology. Among the leading factors that can possibly, influence an American company into setting up operations in the region is the single European market and economy. The country is an active participant i n the socio political and economic union a feature that expands both its market and economic might. The union expands the market thereby expanding the market of any other company operating in the country. Any American company operating in the country would therefore enjoy a free market economy with minimal debts owing to the strong Italian economy. The country has minimal legislations governing the operations of the free market