Doing business in Italy is very different than in the United States. “We are about to embark on a path of slow but constant economic growth”; According to Business Monitor International (“Italy Autos Report” 30), Italy, at first glance, appears to be a promising business environment with expected increases in GDP per capita in the coming years. However, there are many cultural, administrative, geographic, and economic differences that make the business environment very different from that of the United States. Generally dominated by domestic car manufacturers, mainly Fiat SpA, the automotive industry in Italy does not appear very attractive for new businesses due to high barriers to entry. However, foreign automakers such as Ford have managed to penetrate the Italian market, with vehicles such as the Fiesta, focusing on small, fuel-efficient cars. Furthermore, Italy faces numerous problems that make it a less attractive place for business; such as “low business productivity, insufficient investment in high-tech industries, disadvantaged demographics and the labor market”. (“Italian Auto Report” 31)”Although the automotive market in Italy does not show much room for sales growth, as demonstrated by a high number of cars owned per capita. In 2009, mainly due to state incentives, the car market recorded a more moderate decline in sales compared to the previous year (fig. 1). According to Business Monitor International, total car sales are expected to exceed 2.58 million units by 2014 (“Italian Auto Report” 27). Taking into account the four dimensions of Ghemawat distance; cultural, administrative, geographical and economic demonstrates that, if on the one hand there are costs and risks associated with doing business in Italy, on the other there are also advantages. English is taught early as a secondary language... middle of paper... both advantages and disadvantages. The current automotive market, mostly dominated by national players due to consumer loyalty towards national brands, shows very little attractiveness for new entrants. Some foreign automakers, such as Ford, are showing signs of growth in this market. Ford was able to do this by appealing to consumers' desire for small, affordable cars. Works cited "Italian Auto Report - Q1 2010". Auto Italia Report 1 January 2010: ABI/INFORM Trade & Industry, ProQuest. Network. 28 February 2014.Italy - Work. Encyclopedia of Nations. February 28, 2014. .Potesta, Sandra. How to do business in Italy. February 2007. February 28, 2014. Welcome to Italy. February 28. 2014..