Answer:
Being located within another country, in this case, Italy, has a significant impact on Vatican City. Although Vatican City is an independent city-state, it is entirely surrounded by Rome, Italy.
The proximity to Italy affects various aspects of Vatican City, including transportation, trade, and even cultural exchange. Vatican City relies on Italy for many essential services, such as utilities, waste management, and transportation infrastructure.
Additionally, the relationship between Vatican City and Italy extends beyond geographical proximity. There are agreements and treaties in place that define the relationship between the two entities, addressing matters like taxation, citizenship, and diplomatic representation.