Course summary: trade and business in Argentina
Argentina is member of the
Southern Common Market (MERCOSUR)
(Argentina, Brazil, Paraguay and
Uruguay) , having access to an
widespread market with 234
million people and the chance of exporting to and importing from
Mercosur economies without having to pay custom duties. Since the creation of MERCOSUR,
foreign trade between Argentina and the other members of Mercosur went up by 500%.
Argentina has been one of the fastest growing economies
and its 7% increase in Gross domestic product (GDP) corroborates the sustained
economic growth trend. The compound annual growth rate for 2003-08 was 8%, below
People's Republic of China (10.7%) and India (8.4%).
In this
period, economic growth of Argentina was well above all other Latin American economies.
The service export sector registered a record-high volume of USD 12 billion
(one of the highest levels in Latin America).
Argentina gives Foreign direct investment attractive profitability in a huge range of sectors.
Earnings as percentage of Foreign direct investment (FDI) stock were 10% average
(2006-08, the highest
in past 15 years).
1,000 foreign corporations are in the Argentine Republic, including
50% of Fortune 100 firms. In 2009, in response to the global financial and
economic crisis, FDI decreased
globally and
Argentina has not been an rareness. After achieving the highest Foreign direct
investment (FDI) rates in 30 years in 2008 (23.1%).
The automotive industry is a key contributor to manufacturing production
and exports in the Argentine Republic. Automotive sector represented 2.5% of GDP (including
automotive parts manufacturing), 8.5% of industrial production and 10% of total exports. There are
10 car makers in Argentina: Fiat, Ford, General Motors, Iveco, Mercedes Benz, PSA Peugeot-Citroën, Renault, Scania, Toyota and Volkswagen.
Example of the course doing business in Argentina
The Argentine Republic counts with a huge competitive food and beverage industry, with total sales of USD 53 billion (31% of total
manufacturing
production sales) and exports of USD 21 billion (30% of total manufacturing production exports).
The software and computer services industry in the Argentine Republic has 40.000 workers
in near 1.000 companies that invoice USD 1.600 Millions and USD 300
Millions owing to exports.
Creative industries are principally concentrated in Buenos Aires
(7.5% of the district's
Gross domestic product and 8% of total employment).
Other big cities of the Argentine Republic, Cordoba, Mendoza or Rosario, are also developing creative industries sector.
Buenos Aires is one of the main markets in Latin America. Including its metropolitan area (Greater Buenos Aires), Buenos Aires has
13 million people and this positions it
between the 9th most populated urban conglomerates in the world. Buenos Aires is the 13th urban center with the
major
revenue in
USD in the world, in the lead of cities like
Hong Kong, Miami or Sao Paulo,
and its growth forecasts are excellent.
Borders of the Argentine Republic: Bolivia, Paraguay, Brazil,
Chile and Uruguay
