The Spanish Civil War played a significant role in Mussolini's foreign policy as a platform to expand Fascist influence and counter communism. Mussolini's intervention in support of Franco's Nationalists was driven by ideological and strategic considerations. By supporting Franco, Mussolini aimed to establish a Fascist-friendly regime in Spain, thus expanding Italy's influence in Europe. Additionally, this intervention was a means to combat the spread of communism, which Mussolini perceived as a direct threat to Fascist ideology. The resources committed to the Spanish Civil War, however, stretched Italy's military capabilities and had ramifications for its international standing and domestic economy.

Mussolini's foreign policy actions, particularly the invasion of Ethiopia and the alliance with Nazi Germany, initially bolstered his popularity among the Italian populace. These actions were seen as a revival of Italy's national pride and power, evoking the glory of the Roman Empire. The propaganda used during these campaigns further enhanced Mussolini's image as a strong, decisive leader. However, as the economic and human costs of these military adventures became apparent, public opinion started to shift. The prolonged conflicts, coupled with international isolation and economic hardships, gradually eroded the initial enthusiasm, leading to increased dissatisfaction and disenchantment with the regime.

Italy's invasion of Albania in 1939 significantly impacted its relationships with other European powers. The invasion was seen as another example of Mussolini's expansionist and aggressive foreign policy, further straining Italy's already tense relations with Britain and France. It also demonstrated Italy's increasing alignment with Nazi Germany, as the invasion was partly a response to the German annexation of Czechoslovakia and the expansion of German influence in Eastern Europe. This action contributed to the escalating tensions leading up to World War II and underscored Italy's role as an aggressive power in the European theatre.

Mussolini's aggressive foreign policy had a substantial impact on Italy's economy. The extensive military expenditures for campaigns such as the Ethiopian invasion and involvement in the Spanish Civil War placed a significant strain on Italy's financial resources. The economic sanctions imposed by the League of Nations following the invasion of Ethiopia further exacerbated this situation, isolating Italy economically from much of the international community. Additionally, Mussolini's expansionist agenda necessitated a shift in economic priorities towards militarization, diverting resources away from domestic development. This resulted in economic imbalances and contributed to long-term economic difficulties for Italy.

Mussolini's relationship with the League of Nations was initially one of cautious engagement, but it evolved into open defiance. Initially, Italy was a founding member of the League, and Mussolini sought to use this platform to assert Italy's position as a great power. However, as his ambitions for territorial expansion grew, particularly with the invasion of Ethiopia, Italy's stance towards the League changed dramatically. The League's imposition of sanctions following the Ethiopian invasion exemplified this shift. Mussolini's blatant disregard for the League's principles and its attempts at collective security marked a significant departure from cooperative international diplomacy, leading to Italy's eventual withdrawal from the League in 1937.