Wednesday, May 25, 2011

Italian Business Faces Lose-Lose Situation in Libya

100 years have passed since Italy invaded the province of Libya to liberate them from the oppressive Ottoman Empire. Now NATO aircraft are flying daily from Italian bases to pound forces controlled by the regime of Qaddafi, Italy's business is starting to take a hit.

Italian businesses are at risk of collateral damages whether the rebels are successful in this war or not. For some small and medium sized businesses in Italy, orders from Libya were the only ones they had. These orders refer to Libyan oil, which was of good quality and was easy to transport back to Italy.

As the war drags on, Italian businesses could lose as much as $140 billion in disrupted trade. It is considered that Italy is at a real risk that a "new Libya" would not be inclined to trade with Italy.
This same scenario also largely applies even if Qaddafi somehow remains in power.
You can read the article here.