The Economy And Government Project - 2095 Words

Markets and Government Project Introduction Italy is a small Republic that borders France and multiple bodies of water such as; the Liguarian Sea, the Tyrrhenian Sea, and the Ionian Sea. The country consists of small islands but also many enclaves and cities on the mainland as well. As of 2005 their population was estimated around 58,103,000 people. Their largest city and capital is Rome, but Vatican City where the Pope resides is also in Italy. Italy is home to a large amount of historic and cultural cities like Florence, Tuscany, Siena, Bologna, and Naples. Italy is governed under the constitution of 1948 as amended. According to the Columbia Electronic Encyclopedia: â€Å"They have a president, who is the head of state, and elected by†¦show more content†¦Due to their vast plains, Italy began to industrialize late in comparison to other European nations because it was a largely agricultural country. â€Å"It wasn’t until 1950 that industry began to develop rapidly, and by 2006 industry contributed to 30% of the annual gross domestic product.† (Columbia Electronic Encyclopedia 2012). The country relies heavily on tourism, it is one of their major industries and also an essential source of foreign exchange. Italy’s economy has gradually been diversifying, shifting from food and textiles to engineering. Although many of Italy’s important industries are state-owned, the trend in recent years has been toward privatization. â€Å"The service sector has growing importance in Italy and employs well over half the labor force. Italy has large foreign trade, facilitated by it’s large commercial shipping fleet. † (Columbia Electronic Encyclopedia 2012). Their leading exports are motor vehicles, clothes, and engineering products. Their chief trade partners are Germany, France, Spain, and Great Britain. Italy’s economy has deceptive strength because it is supported by a substantial â€Å"underground† economy that functions outside government controls. Part 1 Overall the country does not have much economic freedom, it has some, but not much. So on the spectrum of economic systems it would fall towards the middle, but leaning more toward a command socialist economy. Italy has some freedom in