Doing Business in Argentina
EENI - Business School.
Subject (Course): International Trade and Business in Argentina.
Buenos Aires. Syllabus:
- Introduction to the Republic of Argentina (South America).
- Argentinian Economy.
- Economic Profile of the Argentine provinces.
- International Trade of Argentina.
- Foreign Direct Investment (FDI) in Argentina.
- Case Study:
- Automotive Industry.
- Software and information technology services.
- Creative industries.
- Doing Business in Buenos Aires.
- Case Study:
- Audiovisual industry in Buenos Aires.
- Arcor Group.
- Introduction to Spanish
- Access to the Argentinian Market
- Business Plan for Argentina
Objectives of the subject “Doing Business in Argentina”:
- To analyse the Argentinian economy and foreign trade
- To evaluate business opportunities in Argentina
- To explore Argentina's trade relations with the student's country
- To know Argentina's Free Trade Agreements (FTAs)
- To examine the profile of Argentinian Companies
- To develop a business plan for the Argentinian Market
Sample of the subject - Doing Business in Argentina
Mabel Turk (EENI Professor) in Argentina.
Subject Description: Foreign Trade and Business in Argentina.
The Republic of Argentina (America).
- Borders of the Argentine Republic: Bolivia, Paraguay, Brazil, Chile, and Uruguay
- Argentinian capital: Buenos Aires
- Argentinian official language: Spanish
- Argentina (South America) has a population of 42 millions of people
- Argentina is the eighth largest country in the World
- Currency: the Argentinian Peso
- The main religion in Argentina: Christianity (Catholicism:
38 million, Maronites: 750,000)
- Argentina belongs to the Latin American Economic Area of the Western Christian Civilisation
- Abolition of slavery in Argentina 1853
- African Diaspora in Argentina: 0.1% of the Argentinian population
- Independence from Spain: 1816, recognised in 1857
Buenos Aires is one of the main cities in Latin America. Including its metropolitan area (Greater Buenos Aires), Buenos Aires has 13 millions of people, and this positions it between the ninth most populated urban conglomerates in the World. Buenos Aires is the thirteenth urban centre with
the largest revenue in USD in the World, in the lead of cities like Hong Kong, Miami or São Paulo, and its growth forecasts are excellent.
Buenos Aires is the home to big Argentina's companies.
The main economic sectors of Buenos Aires are:
- Creative industries
- Pharmaceutical industry
Economic recession in 2014
- Argentina is a Frontier Market
- The compound annual growth rate was 8%, below the People's Republic of China (10.7%) and India (8.4%).
- 1,000 foreign corporations are in the Argentine Republic, including
50% of Fortune's 100 firms.
- Argentinian Automotive Industry is a key contributor to the manufacturing production
and exports in the Argentine Republic. Automotive sector represented 2.5% of GDP (including
automotive parts manufacturing), 8.5% of the industrial output and 10% of the total exports. There are ten car makers in Argentina: Fiat, Ford, General Motors, Iveco, Mercedes-Benz, PSA Peugeot-Citroën, Renault, Scania, Toyota, and Volkswagen.
- The Argentine Republic counts with an extensive competitive food and beverage industry, with total sales of USD 53 billion (31% of the total manufacturing
production sales) and exports of USD 21 billion (30% of the total manufacturing production exports).
- Software and computer services industry in the Argentine Republic has 40,000 workers in near 1,000 companies that invoice USD 1,600 million and USD 300
million owing to exports.
- Creative industries are principally concentrated in Buenos Aires (7.5% of the district's Gross domestic product and 8% of the total employment).
Other big cities in the Argentine Republic, Cordoba, Mendoza or Rosario, are also developing creative industries sector.
- Significant accumulation of reserves
- A fixed monetary policy
- A competitive exchange rate
- Argentina has significant natural resources
- Argentina is a member of the MERCOSUR
Argentine emerging sectors:
- New technologies
Foreign Trade of Argentina.
- Argentinian exports decreased by 12% (cereals, fuel, energy, industrial manufacturing, slowdown in Brazil) and imports decreased by 11.4%
- Service export sector registered a record-high volume of 12 billion dollars (one of the highest levels in Latin America).
- Major Argentinian trading partners: Brazil, China, Chile, the United States, and Germany
- Records of levels of foreign direct investment (FDI) in twenty-five years
- Argentina gives foreign direct investment attractive profitability in a huge range of sectors. Earnings as percentage of foreign direct investment stock were 10% average.
- In response to the global financial and economic crisis, foreign
direct investment decreased globally, and Argentina has not been a
rareness. After achieving the highest foreign direct investment rates in thirty years (23.1%).
Argentina's Organisations and Agreements
Argentina is a member of the MERCOSUR (Argentina, Brazil, Paraguay, and Uruguay), having access to an
widespread market with 295
millions of people and the chance of exporting to and importing from
MERCOSUR economies without having to pay customs duties.
Since the creation of the MERCOSUR, foreign trade between Argentina and the other members of the MERCOSUR went up
- MERCOSUR Free Trade Agreements (FTA)
- Latin American Integration Association (ALADI)
- Union of South American Nations (UNASUR)
- Latin American and Caribbean Economic System (SELA)
Argentina has signed the OECD anti-corruption measures