Country iAnalysis iand iMarket iEntry istrategy

Submitted iIn iPartial iFulfilment iof ithe iRequirements ifor ithe

POST iGRADUATE iDIPLOMA iIN iMANAGEMENT

i- iBy
GUNJAN iTHAKUR
AYAN iROY
SANKALP iDAS i
SONAL iKUMARI

Under iThe iGuidance iof iProf. i iSHIVANI iAGRAWAL

Submitted ion i20TH iOctober, i2021

iii 1
 ACKNOWLEDGEMENTS

We iare ireally igrateful ibecause iwe imanaged ito icomple iour i“GLOBAL

iBUSINESS iENVIRONMENT” iassignment iwithin ithe itime igiven iby iour i iProf.

iSHIVANI iAGARWAL. i iThis iassignment icannot ibe icompleted iwithout ithe

icombine ieffort iand ico-orperation ifrom iour igroup imembers. iLast ibut inot ileast,

iweireally ithank iour ifriends iand irespondents ifor ithe isupport ian iwillingness ito

ihelp ius iin iour iassignments.

GUNJAN iTHAKUR
AYAN iROY
SANKALP iDAS i
SONAL iKUMARI

2
 Introduction

Argentina iofficially ithe Argentine iRepublic, iis ia icountry iin ithe isouthern ihalf
iof South iAmerica. iIt ishares ithe ibulk iof ithe Southern iCone with Chile to ithe
iwest, iand iis ialso ibordered iby Bolivia and Paraguay to ithe inorth, Brazil to ithe
inortheast, Uruguay and ithe iSouth Atlantic iOcean to ithe ieast, iand ithe Drake
iPassage to ithe isouth. iArgentina icovers ian iarea iof
i2,780,400 km2 (1,073,500 sq mi),[B] making iit ithe ilargest Spanish-speaking nation
iin ithe iworld.

Argentina iis ia developing icountry that iranks ivery ihigh iin ithe Human
iDevelopment iIndex, ithe isecond-highest iin Latin iAmerica after Chile. iIt iis
ia regional ipower, iand iretains iits ihistoric istatus ias ia middle ipower in
iinternational iaffairs. i It imaintains ithe second-largest ieconomy in iSouth iAmerica,
iand iis ia imember iof G-15 and G20. iArgentina iis ialso ia ifounding imember iof
ithe United iNations, World iBank, World iTrade
iOrganization, Mercosur, Community iof iLatin iAmerican iand iCaribbean
iStates and ithe Organization iof iIbero-American iStates. i

Argentina’s iEconomic iSituation:

Argentina iis ia icountry iin ithe iprocess iof ievolving. iIt ihas ithe isecond-largest
ieconomy iin iSouth iAmerica, itrailing ionly iBrazil. iArgentina ihas ia idiverse
iindustrial ibasis, iabundant inatural iresources, ia ihighly ieducated ipopulation, ian
iexport-oriented iagriculture isector, iand ia idiverse inatural iresource ibase.
iArgentina's ieconomic iperformance ihas ibeen ierratic iin ithe ipast, iwith iperiods
iof irapid iexpansion ifollowed iby ideep irecessions, inotably isince ithe ilate
itwentieth icentury. iSince ithis itime, iincome iinequality iand ipoverty ihave irisen.

Argentina, idespite irecent ieconomic idifficulties, icontinues ito iplay ia isignificant

irole iin ithe iworld ieconomy, iparticularly iin iterms iof iagricultural iproduction.
iLivestock ifarming, igrain iagriculture i(wheat, icorn, iand itransgenic isoy), icitrus
ifruits, itobacco, itea, iand igrapes iare ithe imainstays iof ithe iindustry i(mostly ifor

3
ithe iproduction iof iwine). iThe iagricultural isector iaccounts ifor i6.08 ipercent iof
ithe icountry's iGDP, iwhile ionly i0.087 ipercent iof ithe ipopulation iis iemployed
iin iit. iIn irecent iyears, ithe iindustrial isector ihas igrown idramatically. iThe isector
iaccounted ifor i23.41 ipercent iof iGDP iin i2019 iand iemployed i21.04 ipercent iof
ithe ipopulation iin i2020, iaccording ito ithe ilatest iWorld iBank idata. iProcessing
iand ipacking iof ifood, iin iparticular iin iparticular imeat ipacking, iflour igrinding
iand icanning i- iand iflour-milling iare ithe icountry's imain iindustries.

Each iyear, ithe iWorld iBank ipublishes ia ilist iof ithe itop igenerating icountries
ibased ion itotal iproduction ivalue. iArgentina ihas ithe i31st imost ivaluable
iindustry iin ithe iworld i57.7 ibillion idollars, ibehind iMexico, iBrazil, iand
iVenezuela, ibut iahead iof iColombia, iPeru, iand iChile, iaccording ito ithe i2019
ilist. iArgentina iwas ithe iworld's i31st ilargest iproducer iof isteel, i28th ilargest
iproducer iof iautomobiles, i22nd ilargest iproducer iof ibeer, i4th ilargest iproducer
iof isoybean ioil, iand i3rd ilargest iproducer iof isunflower ioil iin i2019.
iManufacturing iis ithe ilargest isingle isector iin ithe ieconomy i15% iof iGDP iand
iis iwell-integrated iinto iArgentine iagriculture, iaccounting ifor ihalf iof ithe
icountry's itotal iagricultural ioutput. i

Political iSituation iin iArgentina:

Type iof iState: iArgentina iis ia ifederal irepresentative idemocratic iRepublic. i

Argentina's ipolitics iare iconducted iwithin ithe icontext iof ia ifederal ipresidential
irepresentative idemocratic irepublic, iwith ithe iPresident iof iArgentina iserving ias
iboth iHead iof iState iand iHead iof iGovernment, ias idefined iby ithe iConstitution.
iThe itwo ihouses iof ithe iArgentine iNational iCongress ihave ilegislative ipower.
iThe iExecutive iand iLegislative ibranches iof igovernment iare iseparated ifrom ithe
iJudiciary. iElections iare iheld ion ia iregular ibasis iunder ithe imulti-party isystem.

The iPresident iof iArgentina iwields iexecutive ipower, iand iit iis ihis ior iher ijob
ito irespond ito inational iinterests. iThe ibicameral iNational iCongress iis iin icharge
iof ilegislating i(Congreso iNacional). iThe iChamber iof iDeputies i(the ilower

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ihouse) ihas i257 imembers iwho iare ielected iby idirect iuniversal isuffrage ifor
ifour-year iperiods, iwith ihalf iof ithe imembership irenewed ievery itwo iyears. iThe
iSenate i(upper ihouse) ihas i72 imembers iwho iare ielected iby idirect iuniversal
isuffrage ito isix-year iterms, iwith ione-third iof ithe imembers ibeing ichosen ievery
itwo iyears.

Economic iand iPolitical iRisk:

Argentina's ipolitical iand ieconomic ivolatility ihas ia ilong ihistory, iwith

iconsiderable iannual igrowth ichanges. iThe icountry's iGDP iis iexpected ito idrop
iby i10% iby i2020, iowing iprimarily ito ithe iCOVID-19 ipandemic's ieffects.
iArgentina iunderwent ione iof ithe itoughest iand ilongest ilockdowns iin ithe iworld,
iand iwhile ithe iepidemic idid inot ikill ias imany ipeople iin iArgentina ias iit idid iin
iother ilarge iLatin iAmerican icountries, ithe ilaborious iwar iagainst iCOVID-19
iexacerbated iArgentina's ialready iprecarious ieconomic isituation. iHowever, iSouth
iAmerica's isecond-largest ieconomy iis ilikely ito irebound iin ithe inext iyears, iwith
ithe iIMF iexpecting i5.8% igrowth iin i2021 iand i2.5 ipercent igrowth iin i2022,
iaccording ito iApril i2021 iforecasts. iOverall igrowth ifor ithe iyear iis iexpected ito
ibe iin ithe i4.5-5.5 ipercent irange.

Argentina ihas irenegotiated iits iUSD i65 ibillion iforeign idebt iwith iprivate
icreditors, iand iis icurrently iworking ion ia inew irepayment iplan iwith ithe iIMF ito
irepay ia iUSD i44 ibillion iStand-By iArrangement iloan iprovided iin i2018. iThe
igoal iof ithe iprogrammed iis ito iimprove imacroeconomic istability iand ipromote
istrong, iinclusive igrowth. iArgentina iwas iranked i126th iout iof i190 icountries ifor
iease iof idoing ibusiness iby ithe iWorld iBank iin i2020.

According ito ithe iWorld iBank, iArgentina ihas ibeen iin irecession ifor i33% iof
ithe itime isince i1950, isecond ionly ito ithe iDemocratic iRepublic iof iCongo.
iAccording ito ithe iWorld iBank, iinflation iwas istill iabove i40% iin i2020, idespite
ia iminor idrop. iAccording ito ithe iIMF, iArgentina's igeneral igovernment ibalance
iwill ibe i-2.7 ipercent iof iGDP iin i2020, iwith ia idebt-to-GDP iratio iof i103
ipercent i- ithe ihighest isince i2004 i- iand iserious iconcern iabout ithe icountry's
iability ito iservice iits idebt. iDue ito iweak iinternal idemand iand ia idrop iin

5
iindustrial isales icaused iby ithe iepidemic, iboth iimports iand iexports idecreased iin
i2020. iFurthermore, iwith ithe iadministration inow iin iplace, ithere ihasn't ibeen
imuch iroom ifor ifiscal istimulus idue ito ia idifficult idebt irenegotiation.

Current iEconomic iSituations:

COVID-19 ihas ihad ia ihuge iimpact iin iArgentina. iThe icountry's iGDP ifell i9.9
ipercentage ipoints iin i2020, ithe iworst idrop isince i2002. iDespite ithe ifact ithat
ithe ieconomy ihas ibegun ito irecover, iit iis istill i3.3 ipercent ibelow ipre-pandemic
ilevels iin imid-2021, iowing iin ipart ito ia ifresh iwave iof iCOVID iin ithe isecond
iquarter iof i2021. iIn i2021, ithe iprimary ifiscal ideficit iis iexpected ito idecrease
idue ito ithe iend iof iemergency iprogrammed iimplemented ito icombat ithe
ipandemic's ieffects ion ione ihand, iand iextraordinary iresources ifrom ian iincrease
iin iinternational icommodity iprices iand ian iexception itax ion ilarge ifortunes ion
ithe iother, ion ithe ione ihand. iHowever, imacroeconomic iimbalances ipersist iin
ithe idomestic ieconomy. i

Argentina iis ione iof ithe icountries ihardest iimpacted iby ithe icoronavirus, iwhich
ihas iexacerbated ia ithree-year-old ieconomic icrisis. iInflation iis iat i49%, iand
italks iwith ithe iIMF iover ithe irepayment iof ia i$44 ibillion iloan ihave istagnated,
icausing iinvestors ito ibe iconcerned.

Opportunities:

Argentina ihas ialways ihad ia idiverse iset iof istrong iindustries iand isectors, iwhich
ihave iaided ithe icountry iimmensely iduring itimes iof ieconomic ihardship i(this iis
iparticularly itrue ifor ithe iAgricultural iindustry). iAgriculture i(soy, ibeef, iwine,
ianimal ifeed), iautomotive/automotive iparts, ioil iand igas, iand iothers iare iamong
ithe iprospective igrowth iareas. iMany iof ithese iareas iare icurrently iin ineed iof
iinvestment ias ia iresult iof iprevious ieconomic itroubles, icreating ichances ifor
iforeign ispecialists iwith ispecific iskills iand iknowledge. iFurthermore, ithe
iArgentine igovernment ihas iexpressed ia istrong icommitment ito ithe ienvironment
iby iestablishing irenewable ienergy iprojects i(small ito imajor) iin ia irange iof
iindustries. i

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Energy iOil iand iGas: i
High-quality ishale ideposits iand isubstantial igovernment isupport iin iVaca iMurta
iand ielsewhere ito iencourage iexploration iand iproduction. i

Renewable iEnergy: i
Renewable ienergy iauctions icontinue ito ibe ioversubscribed, ipresenting imedium
iand ilong-term ibusiness ipotential. i

Agricultural iTechnology iand iMachinery: i

Agriculture iaccounts ifor itwo-thirds iof iArgentina's iexports. iThe iArgentine
ipeso's idepreciation, icombined iwith ia iforecasted ihigher iharvest iin i2019, iis
iexpected ito ienhance iArgentina's iagricultural iproduction, iexports, iand
iinvestment. i

ICT iand iCybersecurity: i

Argentina's igovernment iis iproposing ia inew itelecom iconvergence ilaw ito iboost
iconnectivity.

Design iand iConstruction: i

Public iPrivate iInfrastructure iProjects iwill ibe iconsiderable, iand iOPIC i(Overseas
iPrivate iInvestment iCorporation) ihas ire-engaged iin iArgentina. iNew iroads, irail,
iports, iand iutilities ihave ialso ireceived imoney ifrom ithe iInter-American
iDevelopment iBank i($4.65 ibillion) iand ithe iWorld iBank i($3.3 ibillion). i

Healthcare iTechnology:
Through iits iNational iHealthcare iPlan, ithe iGovernment iof iArgentina iis
iemphasizing iefficient ispending, iaccessibility, iand imodernization, iincluding ie-
health. i14 ihospitals iin ithe icity iof iBuenos iAires iwill ibe iupgraded.

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Challenges:

Dealing iwith iConstruction iPermits:

Dealing iwith ibuilding ilicenses iis iby ifar ithe imost itime-consuming iand idifficult
iaspect iof idoing ibusiness iin iArgentina. iThe iprocess itakes i347 idays iand
iincludes i24 iprocedures, ipractically iall iof iwhich ihave iassociated ifees. iIt itakes
i150 idays ito iget ia inew iconstruction iproject ipermit iand ian ienvironmental
ieffect iassessment icertificate. i

Obtaining iElectrical iPower:

Obtaining imunicipal iapproval iof ielectrical iplans, ithen isubmitting ithe iservice
iapplication ito iEDESUR, ian iArgentine ielectricity idistributor, iand iwaiting ifor
iconnection icost iestimates, ican ibe ia itime-consuming iprocess iin iArgentina,
itaking iup ito i45 idays. iThen ithere iare i47 idays ileft ifor iinspections iand
iconnecting iwork, imaking ithis ian iextremely ilong iand icomplicated iprocess. i

Property iRegistration:
Property iregistration itakes ian iaverage iof i51.5 idays, iwhich iis iaround iten idays
iless ithan iin iother iLatin iAmerican iand iCaribbean icountries.

Obtaining iCredit:

According ito ithe iWorld iBank, iArgentina iranks i77th iin ithe iworld ifor iease iof
iobtaining icredit, imaking iit ione iof ithe imost istreamlined iprocesses iin ithe
icountry. iNonetheless, ithere iare ifour icomplicated iprocedures ito ifollow, iand
iacquiring icredit ican ibe ifairly icostly.

Taxes ito ibe iPaid:

Paying itaxes iis ia itime-consuming iprocess ithat irequires inine ipayments ieach
iyear iand i311.5 ihours iof ilabour. iArgentina ihas iextremely ihigh itaxes iand ia
icomplicated itax isystem iwith ioverlapping itaxes, imaking itax ipayment ia
isignificant ihardship ifor ienterprises.

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Risks:

Import iLicensing:
Argentina's iimports ihave ibeen ireduced ito i11% iof iGDP idue ito ithe irecession,
idevaluation, iand ithe iabove-mentioned iimport icontrol imeasures, imaking iit ione
iof ithe iworld's imost iclosed ieconomies. iMonetary ipolicy iand ithe iexchange irate.

Monetary ipolicy iand ithe iexchange irate:

The iCentral iBank's i(CB) ipolicy iaims ito imaintain ia imanaged ifloatation
ienvironment iwhile ialso icontrolling iinflation. iIn iorder ito imoderate irising
iinflationary ipressures iin i2021, ithe iCB iwill imaintain ia ipositive iannual
ieffective ipolicy irate. iInflation iis ipredicted ito irise ithis iyear ias ithe igovernment
iallows isome iregulated iprices ito irise, ias iwell ias ia iresult iof isurplus imoney
isupply i(given ithat ia iportion iof ithe ideficit iwill ibe ifunded iwith inew imoney)
iand iexchange irate idepreciation ipass-through. iTo iavert ia ibig idepreciation, ithe
iCB ihas iutilized iexchange irestrictions, iinterest irate ihikes, iand ia ifaster ipace iof
imanaged idepreciation. iThe ilevel iof iforeign ireserves iis ilow.

Debt iowed ito iforeign icountries:

Argentina itook imoves irecently ito ireduce iits igovernmental idebt iby irestructuring
iits iforeign icurrency idebt iwith iprivate icreditors iin i2020. iNegotiating ia inew
ilending iarrangement iwith ithe iIMF ito irepay ithe iUS$44 ibillion iloan iissued
iunder ia iprevious iprogrammed, ias iwell ias irenegotiating ithe iterms iof
iArgentina's ioutstanding idebt iwith ithe iParis iClub igroup iof icreditors, iare ithe
inext isteps iin inormalizing iArgentina's ipublic idebt.

Whether ithe icountry irepresents ia igood iopportunity ifor iyour iproducts. iAnd, ido
iyou irecommend ientering ior inot ientering ithat imarket?

Overall, iArgentina iis ia ipretty inice iplace ito ido ibusiness. iHighlighting ithe
iopportunity ifactors, iit ican ibe iseen ithat ithe icountry ihas ia istrong ibase iin
iEnergy ioil iand igas, ias iit igets igovernmental isupport. iRenewable ienergy, iplays

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ian iimportant irole iin ithe icountry. iIt ihas igood iopportunities iin iAgriculture iand
imachinery, iCyber isecurity, iDesign iand itechnology iand iHealthcare iIndustry.
iArgentina ihas ialways ihad ia idiverse iset iof istrong iindustries iand isectors,
iwhich ihave iaided ithe icountry iimmensely iduring itimes iof ieconomic ihardship
i(this iis iparticularly itrue ifor ithe iAgricultural iindustry). iAgriculture i(soy, ibeef,
iwine, ianimal ifeed), iautomotive/automotive iparts, ioil iand igas, iand iothers iare
iamong ithe iprospective igrowth iareas. iMany iof ithese iareas iare icurrently iin
ineed iof iinvestment ias ia iresult iof iprevious ieconomic itroubles, icreating
ichances ifor iforeign ispecialists iwith ispecific iskills iand iknowledge. iFurthermore,
ithe iArgentine igovernment ihas iexpressed ia istrong icommitment ito ithe
ienvironment iby iestablishing irenewable ienergy iprojects i(small ito imajor) iin ia
irange iof iindustries. i

But ithere iare icertain irisk ifactors iwhile idoing ibusiness iin iArgentina. iTo istart
ia ibusiness iregistration iof iproperty iis imandatory. iObtaining iElectrical ipower,
idealing iwith iconstruction ipermits, iimport ilicense, idealing iwith iconstruction
ipermits. iWith ithese idrawbacks, iit iis istill iprofitable idoing ibusiness iin
iArgentina, ias ithe ieconomy iis igetting isteady iand irecovering iprevious idebts.

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POLITICAL iENVIRONMENT iANALYSIS

POLITICAL iSYSTEM iAND iSTRUCTURE:

The ipolitical isystem iand ithe istructure iof iArgentina's ipolitics iare iconducted
iwithin ithe icontext iof ia ifederal ipresidential irepresentative idemocratic irepublic,
iwith ithe iPresident iof iArgentina iserving ias iboth iHead iof iState iand iHead iof
iGovernment, ias idefined iby ithe iConstitution. iThe itwo ihouses iof ithe iArgentine
iNational iCongress ihave ilegislative ipower. iThe iExecutive iand iLegislative
ibranches iof igovernment iare iindependent ifrom ithe iJudiciary. iElections iare iheld
ion ia iregular ibasis iunder ithe imulti-party isystem.
The igovernment ihas icomposed ithree ibranches:
 Executive iBranch: iThe ipresident iof iArgentina iis iserving ias iboth ihead
iof ithe istate iand ihead iof ithe igovernment. iThe ipresident iis ialso ithe
icommander iin ichief iof ithe imilitary. iThe icabinet iof iministers iis
iappointed iby ithe ipresident, ibut iis inot itechnically ipart iof ithe iExecutive
iPower. The ivice-president ibelongs ito ithe ilegislative ibranch, isince ithe
iposition ialso iholds ithe ipresidency iof ithe iSenate.
i
 Legislative iBranch: iThe ibranch ihas itwo ichambers iof ithe iparliament
iwhich iare ithe isenate i(72 iseats), ipresided iby ithe ivice ipresident iand ithe
ichamber iof ideputies i(257), icurrently ipresided iby iSergio iMassa iof ithe
iBuenos iAries iProvince.

 Judiciary iBranch: iThe iJudiciary iBranch iconsists iof ifederal ijudges iand
iothers iwith ivarying iauthorities, ias iwell ias ia iSupreme iCourt iwith ifive
ijudges inominated iby ithe iPresident iwith iSenate iapproval iand iwho imay
ibe ideposed iby ithe icongress.

 Elections

Elections iin iArgentina ihave ibeen iregular isince ithe ireinstitution iof idemocracy
iin i1983. iBecause iit iis ia i"federal" irepublic iArgentina ihas inational, iprovincial,
imunicipal iand iCiudad ide iBuenos iAires ielections. For ilegislative ipositions

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ielections iare ievery itwo iyears, iand ifor ithe iexecutive ipower iand igovernors
ievery i4.[12]

Apart ifrom iGeneral ielections, iand iballotage, iArgentinians ialso ivote iin iP.A.S.O.
ielections i(Primary, iopen, isimultaneous, iand iobligatory ielections). iThis iis ian
iinstance ibefore ievery itype iof ielection, ito idecide iwhich icandidates iwill
iparticipate iin ithe igeneral ielections. iPolitical iparties ineed ito iget iat ileast i1,5%
iof ivalid ivotes ito icompete iin igeneral ielections.

There iare i16,508 ielected ipublic iservice ipositions. iIn ithe iNational ilevel:
iPresident iand iVice iPresident, i72 isenators iand i257 ideputies. iIn ithe iProvincial
ilevel: i48 ipositions ifor iGovernor iand iDeputy iGovernor, i232 isenators, i944
ideputies iand i72 iother ielective ipositions iin ithe iprovinces iof iTierra idel iFuego,
iCórdoba, iMendoza, iand iLa iPampa. i

Voting

In iArgentina ivoting iis iobligatory ifor iany iArgentine, ieither inative ior
inaturalized, ithat iis i18 iyears iold. iIn iNovember i2012, ithe igovernment ipassed ia
inew ilaw ithat iallowed iArgentines ibetween ithe iages iof i16–18 ito ivote
ioptionally. i

In ithe i2015 inational ielections, ivoter iturnout iwas iparticularly ihigh: iChamber iof
iDeputies i74.18%, iSenate i79.83%, iPresidential i(1st iRound) i78.66%,
iPresidential i(2nd iRound) i80.90%.

General ielections were iheld iin Argentina on i27 iOctober i2019, ito ielect
ithe president iof iArgentina, imembers iof ithe inational icongress iand ithe
igovernors iof imost iprovinces.[2] Former iCabinet iChief Alberto
iFernández of Frente ide iTodos defeated iincumbent ipresident Mauricio
iMacri of Juntos ipor iel iCambio, iexceeding ithe ithreshold ito iwin ithe ipresidency
iin ia isingle iround. iMacri ibecame ithe ifirst iincumbent ipresident iin iArgentine
ihistory ito ibe idefeated iin ihis ireelection ibid.

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STABILITY iOF iGOVERNMENT:
Argentina ihas ia istable ipolitical ienvironment iin ithe icountry. iThe igovernment iis
ideveloping ithe icountry’s iinfrastructure, iattracting iforeign iinvestors iand
ilaunching inew ipolicies ito ipromote ireligious itrade. i
The iaverage ivalue ifor iArgentina iduring ithat iperiod iwas i-0.06 ipoints iwith ia
iminimum iof i-0.78 ipoints iin i2002 iand ia imaximum iof i0.2 ipoints iin i2016.
iThe ilatest ivalue ifrom i2020 iis 0.04 ipoints.

Future ipolitical iRisk i- iArgentina iis icurrently istruggling iwith idouble-digit

iinflation. iIts ieconomy icontracted iby i2.5% iin i2018 iand icontinued ito idecline
iin i2019. Argentina’s idebt ito iGDP iratio iis icurrently iover i90%. iFernandez’s
idomestic ieconomic iagenda iwill ibe irestricted iby ithe iburden iof ipaying idown
iArgentina’s outstanding idebt. Argentina iis ifacing irenewed ipressure ito idevalue
iits icurrency. iPresident iAlberto iFernandez iand ihis igovernment iare ialso
iworking ito irenegotiate i$44 ibillion iin iloans ithe icountry iowes ithe iInternational
iMonetary iFund. Nearly ia ithird of ithe icountry’s iworkforce iis iunemployed ior
ihas igiven iup ion ifinding iwork. iBut, idespite ithe iconstraints iit ifaces,

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iArgentina’s igovernment ihas itried ito iimplement ipolicies ito ihelp icitizens istay
iat ihome iand icontain ithe ispread iof ithe icoronavirus. i

The icollapse iof ifiscal irevenue iprovided ian iopportunity ito ioverhaul ithe isystem
ito iease iboth ithe itax iburden iand ithe icomplexity iof imeeting itax irequirements,
iwhile iincentivizing imore iArgentines ito ileave iinformality iin ithe ipost-pandemic
ieconomy. iInstead, ithe igovernment icreated inew itaxes iand iincreased ithe irate iof
iexisting iones ito iextract imore ifrom ia ishrinking ipool iof icontributors.

For iinstance, ithe igovernment’s iongoing ifocus ion isecurity iand iillegal idrugs,
iand iother ipolitical icontroversies, iposes ia irisk ito ithe ioperating ienvironment.
iTherefore ithere imay ibe ia ihigh ipolitical irisk iin iArgentina.

Bribery iand icorruption irisk/index: i

According ito ithe iTransparency iInternational’s i2020 iCorruption iPerception

iIndex iItaly iscored i42 ipoints iout iof i100 iand iRank i78nd iposition iout iof i180
icountries. iAs iper iGlobal iCorruption ibarometer iReport i49% iof ipeople iwho
ithought icorruption iincreased iin ithe iprevious i12 imonths iand i13% iof ipublic
iservice iusers ipaid ia ibribe iin ithe iprevious i12 imonths.

14
Economic iand ibusiness ienvironment ianalysis:

a) i iDemographics: iThe icurrent ipopulation iof iArgentina iis i45,729,136 igroups:

ibased ion ithe iprojections iof ithe ilatest iunited iNations iData. iArgentina’s
ipopulation iis igrowing iat ithe irate ia irate iof i0.93%. iDistribution iof ipopulation
iaccording ito iage
0-14 iyears i– i25.2% i(male i5,450,679 i/ ifemale i5,200,704)
15-64 iyears i- i63.6% i(male i13,400,997/female i13,440,948)
65 iand iover i– i11.1% i(male i1,940,810/female i2,758,356(2012 iest.)

In i2020, ithe ipopulation iof iArgentina iwas i45.48 imillion iinhabitants, iwith ia
iratio iof 0.98 imale/female. iThe imedian iage iin iArgentina iis i32.4, iwith i24%
iaged ibetween i0 iand i14, i15.2% ibetween i15 iand i24 iyears, i39.6% ibetween i25
iand i64, iand i12.1% i65 ior iolder. iMost ihouseholds iconsist iof itwo ior ithree
ipeople, iwith ione-person ihouseholds irepresenting i18% iof iall ihouseholds, iwhile
itwo ior ithree ipeople ihouseholds iaccount ifor i42% iof ithem, i29% iof ithem ihave
ifour ior ifive ipeople, iand i11% ihave isix ior imore iinhabitants. iWith ia iliteracy
irate iof i99%, ithe isame irate iof ichildren ienrolled iin iprimary ieducation,
iArgentina ihas ihigh ieducation ilevels. iAdditionally, i90% iof ithose iwith iprimary
ieducation idegrees igo ion ito ienroll iin isecondary ieducation. iHowever, ionly
iabout i21% iof iArgentines icompleted ia itertiary idegree. iMore iwomen ithan imen
iattain ia itertiary idegree iin ithe icountry. iRoughly i22% iof iwomen iearned ia
ibachelor’s idegree, iwhile ionly i15% iof imen idid iso. iArgentina's ipopulation iis
imainly iurban, ias i92.1% iof iArgentines ilive iin icities, iwith ithe i10 ilargest
imetropolitan iareas iaccounting ifor inearly ihalf iof ithe ipopulation. iOne-third iof
ithe ipopulation ilives iin iBuenos iAires ialone, iand ipockets iof iagglomeration
ioccur imainly ithroughout ithe inorthern iand icentral iparts iof ithe icountry.

Argentina iis ihighly iurbanized, with ithe iten ilargest imetropolitan iareas
iaccounting ifor ihalf iof ithe ipopulation, iand ifewer ithan ione iin iten iliving iin
irural iareas. iAbout i3 million ipeople ilive iin iBuenos iAires iproper, iand

15
ithe Greater iBuenos iAires metropolitan iarea itotals iaround i13 million, imaking iit
ione iof ithe ilargest iurban iareas iin ithe iworld. The imetropolitan iareas
iof Córdoba and Rosario have iaround i1.3 million iinhabitants ieach, and isix iother
icities i(Mendoza, Tucumán, La iPlata, Mar idel iPlata, Salta and Santa iFe) have iat
ileast ihalf ia imillion ipeople ieach.

The ipopulation iis iunequally idistributed iamongst ithe iprovinces, iwith iabout i60%
iliving iin ithe iPampa iregion i(21% iof ithe itotal iarea), iincluding i15 million
ipeople iin Buenos iAires iProvince, iand i3 million ieach iin Córdoba
iProvince, Santa iFe iProvince and ithe Autonomous iCity iof iBuenos iAires. iSeven
iother iprovinces ieach ihave iabout ione imillion ipeople

b) iPer icapita iincome ilevel iand iwealth idistribution: iGDP iper icapita iincome iin
iArgentina iwas ilast irecorded iat i8692.71 iUS iDollars iin i2020.

Wealth iDistribution: iIn i2017, iit iwas iestimates ithat iaround i47.9 ipercent iof ithe
iincome igenerated iin iArgentina iwas iheld iby ithe irichest i20% iof iits ipopulation.
i(statista)

c) iMajor iexports iand itrading ipartners: iArgentina’s imajor iexports iinclude ioil-
cake iand iother isolid iresidues i(13.1%), imaize i(9.1%), isoya-bean ioil iand isoya
ibeans i(10.2%), iand imeat i(3.5%).

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Trade ipartners ifor iexport: iBrazil, iChina, iUnites istates, iChile, iVietnam.
i(satandertrade), iArgentina itop itrading ipartners iare:
 Brazil i(12.5% iof iArgentina’s itotal iexports)
 China i(11.3%)
 Vietnam i(6.8%)
 Chile i(5.5%)
 India i(5.2%)

d) iBusiness ienvironment: iThe iArgentina igovernment iactively iseeks iforeign

idirect. iThe ioverall iopenness ito iforeign iinvestment iis ibelow iaverage. iArgentina
ifair itrade ilaw iare ibased ion ithe iarticle iVI iof ithe iWTO iunder iresolutions
i281/97 iand i622/95.

e) iInflation ilevel: iInflation iin iArgentina iwas i54 ipercent iin i2019, ibefore
ifalling ito i42 ipercent iin i2020.

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Currency iExchange iRate: i1 iArgentine ipeso iequals i0.76 iIndian iRupees. i1
iArgentine iPesos iequals i0.010 iUnited iStates iDollar.

f) iArgentina iliteracy irate ifor i2018 iwas i99.00. iAvailability iof iskilled ilabor iwas
i20,434,050 ias iof i2019. iLabor iCost: ithe iminimum isalary iis iAR$ i7,560 iper
imonth iand iAR$ i37.80 iper ihour.

Labour imarket iinsecurity iis irelatively iclose ito ithe iOECD iaverage, ipartly idue
ito ihigh iseverance ipayments ifor iformal iemployees. iHowever, imore ithan i30%
iof ithe ilabour iforce iare iin iinformal iemployment iand ihave ino iprotection
iagainst iincome ilosses ifrom iunemployment iat iall. iWith ilow iaverage iwages
iand ihigh iwage iinequality, iArgentina iranks iamong ithe icountries iwith ithe
ilowest iearnings iquality, iwith ian iindicator ivalue iof iless ithan ihalf iof ithe
iaverage iOECD icountry iand ionly ione ifourth iof ithe itop iperformer. iWomen
iearn i45% iless ithan imen iin iArgentina, ia idifference ithat iis i7 ipercentage ipoints
ilarger ithan iin ithe iaverage iOECD icountry.

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Average iannual ilabour iproductivity igrowth ifrom i2010- i2016 iwas inegative i(-
0.3%), iwhich iplaces iArgentina iamong ithe iweakest iperformers iof ithe icountries
icovered iby ithe inew iOECD iJobs iStrategy. iThis ipartly ireflects ilow iinvestment
iand imisallocation iof iresources idue ito ipolicy idistortions, iincluding ihigh
ibarriers ito idomestic iand iforeign icompetition iand iburdensome iregulation ifor
ientrepreneurs. iAnother ireason iis ilow iskills, ias ithe ishare iof ilow iperforming
istudents iis ihigher ithan iin ithe ileast iperforming iOECD icountry. iThe
iArgentinian ieducation isystem iexacerbates iinequalities, iwith istudent
iperformance ibeing iclosely irelated ito isocio-economic iconditions. iOver ithree
iquarters iof istudents ihave ilow iperformance, imany iof iwhom idrop iout iof ithe
isystem iwithout ia isecondary ischool iqualification.

g) iMembership iin iregional ieconomic iand itrading iblock: iArgentina iis ia

imember iof ithe iOrganization iof ithe iAmerican istates, ithe iInter-American
idevelopment iBank, ithe iLatin iAmerica iIntegration iAssociation iand
iMERCOSUR. iThe icountry iis ialso ia imember iof ithe iCommunity iof iLatin
iAmerica iand iCaribbean istates. iArgentina ibecame ian iobserver imember iof ithe
ipacific ialliances iin i2016.Argentina iis ia imember iof iGeneral iagreement itariffs
iand itrade iand ithe iWorld iTrade iOrganization i(WTO) iagreement. iArgentina
ijoined ithe iWorld iTrade iOrganization ion iit iestablishment iin i1995.

h) iLegal isystems: iProtection iof iintellectual iproperty iright i– iThe iUnited iStates
iTrade iRepresentative i(USTR) ihas iincluded iArgentina ion iits ispecial i301
ipriority iwatch ilist ifor iinsufficient iprotection iand ienforcement iof iIntellectual
iproperty irights isince i1996.

Patents
Inventions ican ibe iprotected iin iArgentina ithrough ipatents ior iutility imodels.
iPatents iare iavailable ifor iproducts ior iprocesses ithat imeet ithe ifollowing
irequirements:
 Novelty.
 Inventive istep.
 Industrial iapplicability.

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Patents iare ifiled ibefore iand iexamined iby ithe iNational iIndustrial iProperty
iOffice i(Instituto iNacional ide ila iPropiedad iIndustrial) i(INPI).
Patents iare igranted ifor ia inon-extendable iterm iof i20 iyears ifrom ithe ifiling idate.

Trade imark irights iare igranted ifor iten iyears ifrom ithe iregistration idate iand ican
ibe irenewed iindefinitely, isubject ito iuse. iA iregistration ican ibe icancelled ion ithe
igrounds iof inon-use ifor imore ithan ifive iyears.

20
Market iAnalysis-

Consumer iProfile

In i2020, ithe ipopulation iof iArgentina iwas i45.48 imillion iinhabitants, iwith ia
iratio iof 0.98 imale/female. iThe imedian iage iin iArgentina iis i32.4, iwith i24%
iaged ibetween i0 iand i14, i15.2% ibetween i15 iand i24 iyears, i39.6% ibetween i25
iand i64, iand i12.1% i65 ior iolder. iMost ihouseholds iconsist iof itwo ior ithree
ipeople, iwith ione-person ihouseholds irepresenting i18% iof iall ihouseholds, iwhile
itwo ior ithree ipeople ihouseholds iaccount ifor i42% iof ithem, i29% iof ithem ihave
ifour ior ifive ipeople, iand i11% ihave isix ior imore iinhabitants. iWith ia iliteracy
irate iof i99%, ithe isame irate iof ichildren ienrolled iin iprimary ieducation,
iArgentina ihas ihigh ieducation ilevels. iAdditionally, i90% iof ithose iwith iprimary
ieducation idegrees igo ion ito ienroll iin isecondary ieducation. iHowever, ionly
iabout i21% iof iArgentines icompleted ia itertiary idegree. iMore iwomen ithan imen
iattain ia itertiary idegree iin ithe icountry. iRoughly i22% iof iwomen iearned ia
ibachelor’s idegree, iwhile ionly i15% iof imen idid iso. iArgentina's ipopulation iis
imainly iurban, ias i92.1% iof iArgentines ilive iin icities, iwith ithe i10 ilargest
imetropolitan iareas iaccounting ifor inearly ihalf iof ithe ipopulation. iOne-third iof
ithe ipopulation ilives iin iBuenos iAires ialone, iand ipockets iof iagglomeration
ioccur imainly ithroughout ithe inorthern iand icentral iparts iof ithe icountry.

Purchasing iPower

GDP iper icapita ihas ibeen ifluctuating ifor iyears; iin i2017, iit iincreased iand
ireached iUSD i22,947 iPPP i(World iBank), iwith ithe iaverage iyearly isalary iis
iestimated iat iUSD i9,450. iThe iconcentration iof iwealth iis ivery ihigh iin
iArgentina, ias ithe icountry’s irichest i10% icontrol imore iwealth ithan ithe ipoorest
i60% iof ithe ipopulation. iFurthermore, iGini iindex icoefficient iin iArgentina iwas
ireported iat i41.4 iin i2018 i(World iBank, ilatest idata iavailable). iAdditionally, ithe
iwage igap ibetween imen iand iwomen ireached i25% iin i2020 i(Statista). iHowever,

21
iit iis ipossible ithat ithe iwage igap iis imuch ilarger ithan ithat, igiven ithat isalaries
ifor idomestic iwork iare inot itaken iinto iaccount, iand i12.3% iof iwomen iin ithe
icountry iwork iin idomestic iservices. iOut iof iall iregistered iworkers iin ithe
icountry, i41% iare iwomen iand i59% iare imen. iAdditionally, 79% iof ithe
ipopulation iworks iin ithe iservices isector, i21% iin iindustry, iand i0.1% iin
iagriculture i(World iBank, i2020). iThe ihighest iwages iin ithe icountry iare iin
iBuenos iAires, ifollowed iby iCórdoba, ithen iCorrientes.

Consumer iBehaviour

Consumption ipreferences iin iArgentina itend ito ibe icloser ito ithose iof iEuropean
icountries ithan ithose iof iits iLatin iAmerican ineighbours. iGiven ithat ithe icountry
iwent ithrough ia ifew icrises iover ithe ipast itwo idecades, iArgentine iconsumers
ihave ibecome iquite ifrugal iand iconsumption ishifted itowards ivalue ifor imoney.
iArgentinian iconsumers itend ito ibe irational iand iconservative iwith itheir imoney,
ibuying ionly iwhat iis istrictly inecessary, iprioritising iprice, inot iwasting, iwalking
iinstead iof idriving, iand iacquiring inew ibrands iwhen icheaper. iAs ia iresult,
ipurchasing itends ito iorient iitself iaround isub-brands iand ispecial ioffers, iand
ihousehold ispending ihas idecreased. iConsumers ihave ialso ibecome imore
iselective iand imore ireticent iwith iregard ito inew iproducts. iMoreover, iArgentine
iconsumers itend ito ifavour inational irather ithan iimported iproducts, iespecially ias
ithe ilatter ican ibe iup ito ithree itimes imore iexpensive. iAccording ito iNielsen,
iover ithe ipast iyear iconsumers ihave ichanged itheir ispending ihabits ito isave ion
ihousehold iexpenses, ihave icut idown ion itakeaway imeals iand ialcohol, iand ihave
iswitched ito icheaper ibrands iwhen ishopping ifor igroceries. iIn ithe ifood isector
iin iparticular, iconsumers itend ito ibuy iwhatever iis icheapest iand iare inot iloyal
ito ibrands. iThey ialso isearch ifor ithe ibest iprices iand ispecial ideals ibefore
ibuying ia iproduct, ieven iif ithat imeans igoing ito iseveral idifferent ishops iin ione
iday. iHowever, ithey itend ito ichoose ihealthy ibut iflavoursome iproducts ithat iare
ipractical iand ieasy ito iprepare, iwhile ilooking ifor ia ibargain iat ithe isame itime.
iThey iare ialso inot iloyal ito ispecific iretail ichains, iand iare iconstantly ilooking
ifor ibetter iservice, iless itime iwaiting iat ithe itill iand ian ioverall ibetter ishopping
iexperience, iwherever ithat imay ibe. iTherefore, ishops iare iconstantly ibattling
ieach iother ito iattract iconsumers, iwhich iforces iretail ichains ito iinvest iin imass
imedia iadvertisement, iannouncing idiscounts, igreat ideals iand ispecial ioffers. iOn

22
ithe iother ihand, iwealthier iconsumers iaccept ithe ihigher iprices iof imajor ibrand
inames, ibecause ithey iperceive ithese ibrands ito iguarantee isafer iproducts iand
ihigher iquality. iFurthermore, iyounger iconsumers iare imore ibrand iconscious
ithan iolder iconsumers, iand, ieven ithough iprice iis istill ia iconcern, ithey iusually
ido inot imind ipaying imore ifor ia ibrand-name iproduct. iEven ithough ion-line
ishopping ihas ibeen igrowing iin ithe icountry i- iespecially iamong ithe iyounger
igenerations i- iconsumers istill iprefer ito ido itheir ishopping iin iperson. iWhen
ishopping ion-line, iafter isales iservice iand idelivery iplay ia iconsiderable irole iin
ipurchasing idecisions iamong ithe imajority iof iArgentines. iThe ihousehold
iappliances isector iis iparticularly iinteresting, ias ithere iis ian ioverall ipreference
ito irepair, irather ithan ireplace, iolder igoods, iso ithere iis ia iflourishing imarket
ifor ihousehold iappliance ispare iparts iin ithe icountry. Consumers iare ihighly
iattracted ito icollaborative iplatforms isuch ias iUber iin iArgentina. iNevertheless,
iexcept iMendoza iprovince, iuse iof isuch iplatforms iare iconsidered iillegal,
ipushing iconsumers ito iuse ipublic itransportation ior ilicensed itaxis.

Textile iindustry iwould ibe ia isuccesful iproduct iin ithat icountry ias ithey
ihave igone ithrough ifew icrises iover ithe ipast itwo idecades. iso ithey ihave
ishifted itowards ivalue ifor imoney. iMost iof ithem iare ipreferring inewer iand
icheaper iproducts ias ithey iare inot iloyal ito ia iparticular iproducts iso itheir's
iproduct iplacing iis inot iestablished iyet.

Consumption iExpenditure
2021 2022
Purchasing iPower iParity 2018 2019 2020
i(e) i(e)
(Local
Purchasing iPower iParity 14.0 20.75 29.12 41.20 56.
iCurrency iUnit iper iUSD)
2 23

A iTotal iOf i113,000 iPeople iAre iEmployed iIn iThe iTextile iSector iIn iArgentina.
iDespite iThis, iIt iIs iMarked iBy iA iHigh iRate iOf iInformal iEmployment. iThe

23
iBiggest iStumbling iBlock iThat iThe iNational iGovernment iMust iOvercome iIs
iInformal iEmployment, iWhich iMust iBe iCombined iWith iThe iProduction iOf
iAdded iValue iAnd iThe iElimination iOf iInternal iInefficiencies iIn iThe iTextile
iIndustry iOf iArgentina. iSmart iTextiles iIs iA iSector iOf iArgentina iTextile
iMarket iThat iIs iYet iTo iBe iExplored iBut iHas iHigh iPotential. iWith iThe
iDevelopment iOf iThis iSector, iThe iIndustry iWill iBe iAble iTo iReach iHighly
iDistinct iSegments iWith iHigh iAdded iValue iProducts. iFor iThe iPast iDecade,
iThe iIndustry's iTrade iBalance iHas iBeen iNegative, iIndicating iIts iDependency
iOn iOther iExternal iSectors. iwhich ican ibe iour iperfect itiming ifor ientering iits
imarkets

iThe iRetail iNetwork

There iare itwo itypes iof itraditional isales ichannels iin iArgentina. iOne iis ithrough
ilarge-scale iretailers iwith ia idefined, ibut ilimited, ishare iof ithe imarket. i iThe
iother iis ithrough ithe imany ispecialized iretailers ithat iseek ito iprotect itheir
iniches.
The ifood iretail imarket iis iloosely iseparated iinto ithree icategories: itraditional
i"mom iand ipop" istores i(locally icalled i“chinos” ino imatter iwho iowns ithem)
iscattered ithroughout ilocal ineighborhoods, iself-service imini-markets iand
idrugstores, iand ithe isupermarkets iand ihypermarkets. i iConsumers igenerally
iprefer ihypermarkets iand isupermarkets ifor ilower iprices ion iweekly iand
imonthly ipurchases.

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iADVERTISEMENTS: iNine itypes iof iadvertising imedia iavailable ito ian
iadvertiser iare: i(1) idirect imail i(2) inewspapers iand imagazines i(3) iradio
iadvertising i(4) itelevision iadvertising i(5) ifilm iadvertising i(6) ioutdoor
iadvertising i(7) iwindow idisplay i(8) ifairs iand iexhibition iand i(9) ispecially
iadvertising!
iThe iArgentine itextile iand iapparel iindustry's iturnover iamounted ito iUSD i2.55
ibillion iin i2017. iSince i2014, ithere ihas ibeen ia idecline iin ithe ilevel iof
iproduction iand ia ishrinkage iof ithe idomestic imarket, iwhich itotaled i420 itons iin
i2017.

The itotal iArgentinean itextile imarket iis iestimated ito ibe iworth iUS$ i12 iBillion.
iThe iclothing iindustry iof iArgentina iis iexpected ito igrow isteadily iin ithe
icoming iyears iin iview iof ithe igrowing idemand ifor ihigh ifashion igarments iand
iits iexports iand ithe idynamic ilocal iretail isector iconsisting iof ilocal iand iforeign
iplayers.
i
The itarget iaudiece iwould ibe ithe iyoung igeneration ias ithey iare ivery imuch
ifashion ioriented iand imuch imore ipersuaded iby iAmerican iculture. i

25
BIBLIOGRAPHY:

https://en.wikipedia.org/wiki/Argentina

https://www.oecd.org/countries/argentina/jobs-strategy-ARGENTINA-EN.pdf

https://en.wikipedia.org/wiki/Demographics_of_Argentina

https://tradingeconomics.com/argentina/corruption-index

https://www.forbes.com/sites/forbes-personal-shopper/2021/10/18/luxury-dog-
accessories/?sh=6aa501a073fc

https://www.theglobaleconomy.com/Argentina/wb_political_stability/

https://en.wikipedia.org/wiki/2019_Argentine_general_election

26
Cultural idimensions i

a) Religion iin iArgentina i2019 iConicet. iRoman iCatholic i(62.9%) iProtestant

i(15.3%) iNone i(18.9%) iOther i(4%)
b) Protestant i(11%) iNone i(22%) iOther i(1%)
c) Religion iin iArgentina i(2020) iLatinobarometro. iRoman iCatholic i(49%)
iProtestant i(6%) iNone i(40%) iOther/DK i(5%)

Language

Spanish iis ithe inational ilanguage, ialthough iin iArgentina iit iis ispoken iin iseveral
iaccents iand ihas iabsorbed imany iwords ifrom iother ilanguages, iespecially iItalian.
iNumerous iforeign ilanguages iand idialects ican ibe iheard, ifrom iBasque iand
iSicilian ito iWelsh iand iGaelic.

Ethnic iMakeup i
Most iArgentines iare idescended ifrom several iEuropean iethnic igroups,
iwith imore ithan i55% ihaving iItalian iorigins. iThe isecond-most icommon
iethnic iorigin iis iSpanish. iAbout i17% ihave iFrench iorigins, iand iabout
i8% iare idescended ifrom iGerman iimmigrants.

Sports iand irecreation

The imost ipopular isport iamong ithe iArgentine iworking iclass iis football (soccer),
iintroduced iby ithe iBritish i(as iwas ipolo) iin ithe i19th icentury.

Argentina’s iworldwide ipreeminence ion ithe polo field ireflects ithe ination’s
idivided isocial ibase, ithe ihardiness iof iits ihorses, iand ithe iskills iof iits iriders.

27
iBeliefs iin iArgentina

According ito ia i2019 isurvey iby iConicet, ithe icountry's inational iresearch
iinstitute, 62.9 ipercent iof ithe ipopulation iis iCatholic; i15.3 iProtestant, iincluding
ievangelical igroups; i18.9 ipercent ino ireligion, iwhich iincludes iagnostics; i1.4
ipercent iJehovah's iWitnesses iand iThe iChurch iof iJesus iChrist iof iLatter-day
iSaints

Argentinian iFamily iValues

 The ifamily iis ithe icentre iof iArgentine ilife iwith iextended ifamilies istill
ihaving iprominence.
 The iheads iof ipowerful ifamilies icommand iwidespread irespect, ibut iwith
ithis icomes ia iresponsibility ito icare ifor iothers iin iterms iof isecurity, ijobs,
ietc iand ito imaintain ipersonal iand ifamily ihonour.
 Honour iis iin iall irespects ithe ibe iall iand iend iall iand iit iroutinely iaffects
iday-to-day ilife iat ihome, iin ithe icommunity iand iin ibusiness.

Customs

Meeting iand iGreeting

 A ihandshake iand inod ishow irespect iwhen igreeting isomeone.

 An iembrace iand ione ikiss ion ithe icheek iis icommon ibetween ifriends
iand iacquaintances.

Body iLanguage

 Argentines iare itouchers iand istand iclose ito ieach iother iwhen ispeaking.
iDo inot iback iaway.
 The i“O.K.” iand i“thumbs iup” igestures iare iconsidered ivulgar.
 Hitting ithe ipalm iof ithe ileft ihand iwith ithe iright ifist imeans i“I idon’t
ibelieve iwhat iyou iare isaying” ior i“That’s istupid.”

Corporate iCulture

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  Personal irelationships iare iimportant iand imust ibe ideveloped ibefore
ibusiness iis idone.
 Argentines ioften ineed iseveral imeetings iand iextensive idiscussion ito
imake ideals.
 Decisions iare imade iat ithe itop. iTry ito iarrange imeeting iwith ihigh-level
ipersonnel.
 Guests iat ia imeeting iare igreeted iand iescorted ito itheir ichairs. iThe
ivisiting isenior iexecutive iis iseated iopposite ithe iArgentine isenior
iexecutive. i

e) i i i iUnique ibusiness icustoms, ietiquette iand ipractices ione ishould ibe

iaware iof iwhen idoingbusiness iin ithat icountry i(time iand idecision--making,
imeetings, inegotiations, ibusiness irelationships, idress icode, istatus, igift--giving,
ietc.)

Meeting iEtiquette

 Initial igreetings iare iformal iand ifollow ia iset iprotocol iof igreeting ithe
ieldest ior imost iimportant iperson ifirst.
 A istandard ihandshake, iwith idirect ieye icontact iand ia iwelcoming ismile
iwill isuffice.
 Maintaining ieye icontact iindicates iinterest.
 In igeneral, iArgentines iprefer ithird-party iintroductions, iso iyou ishould
iwait ifor iyour ihost ior ihostess ito iintroduce iyou ito iothers iat ia ismall
igathering.
 When ileaving, isay igood-bye ito ieach iperson iindividually.

Gift iGiving iEtiquette

 If iinvited ito idinner iat ian iArgentine's ihome ibring ia ismall igift ifor ithe
ihostess.
 Since itaxes ion iimported ispirits iare iextremely ihigh, ia ibottle iof iimported
ispirits iis ialways iwell ireceived.
 Do inot igive iknives ior iscissors ias ithey iindicate ia idesire ito isever ithe
irelationship.

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  Gifts iare iopened iimmediately.

Business iMeeting iEtiquette

 Appointments iare inecessary iand ishould ibe imade i1 ito i2 iweeks iin
iadvance, ipreferably iby ie-mail ior itelephone.
 Avoid iJanuary iand iFebruary, iwhich iare itheir ivacation itimes; ithe imiddle
iweeks iof iJuly, iwhich iis iwhen imany igo iskiing; iand iduring ithe itwo
iweeks ibefore iand iafter iChristmas.
 You ishould iarrive ion itime ifor imeetings, ialthough ithe iperson iyou iare
imeeting imay inot ibe ipunctual.
 In isome iolder, imore ibureaucratic iorganizations, ithe imore iimportant ithe
iperson iyou iare imeeting, ithe ilonger ithey ikeep iyou iwaiting.
 Do inot iimmediately ibegin idiscussing ibusiness. iSmall italk ihelps
iestablish ia irapport.
 The iperson iyou iare imeeting iwith imay iaccept itelephone icalls iand
iattend ito iother ibusiness iwhile iyou iare ithere.

Business iNegotiations

 Argentines iexpect ito ideal iwith ipeople iof isimilar istatus.

 Hierarchy iis iimportant. iDecisions iare imade iat ithe itop iof ithe icompany.
iBusiness imoves islowly ibecause iit iis iextremely ibureaucratic.
 Decisions ioften irequire iseveral ilayers iof iapproval.
 Argentines ihave ia idifficult itime idisagreeing, iso ido inot ithink ithat ithings
iare igoing iwell isimply ibecause ino ione iis ichallenging iwhat iyou isay.

Dress icode i

 Business iattire iis iformal iand iconservative, iyet istylish.

 Men ishould iwear idark icoloured, iconservative ibusiness isuits.
 Women ishould iwear ielegant ibusiness isuits ior idresses.
 Good iquality iaccessories iare iimportant ifor iboth isexes.
 Dress iwell iif iyou iwant ito imake ia igood iimpression.

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e) iCommunication

Verbal

 Communication iStyle: Argentines iare iquite iexpressive iand iemotive iin

itheir icommunication. iThey itend ito iask imany iquestions ithat imay ibe
iconsidered ipersonal; iit ican ibe iconsidered iimpolite iif ione idoes inot
iask isuch iquestions. iIt iis ialso icommon ifor iArgentines ito iinterrupt
iothers iwhile iconversing iwhen iovercome iby itheir ipassion ior iinterest.
 Indirect iCommunication: Argentines itend ito icommunicate iindirectly.
iPeople iare iexpected ito iread ibetween ithe ilines. iIndeed, iArgentine
iconversations itend ito ibe ihighly icontextual. i
 A ifew iwords ican ihold igreat imeaning idepending ion ithe icontext iand
ithe idelivery iof ithe istatement.
 Conflict: Despite itheir iexpressive iway iof iverbally icommunicating,
iArgentines iusually iaim ito iavoid iconflict ior iconfrontation. iIf ipeople
idisagree iover ia itopic, iArgentines iusually iaddress ithe idifferences iin
iopinion iindirectly iand itactfully. iAt itimes, ithey imay igo ito igreat
ilengths ito ide-escalate ia isituation iand ikeep ithe isituation ias icalm ias
ipossible.

Non-Verbal

 Physical iContact: It iis icommon ifor iArgentines ito ibe iquite tactile as
ithey icommunicate. iTouching ianother iperson’s iarm ior iback iis ia
icommon iand iwidely iaccepted ipractice.
 iPhysical icontact iwith isomeone iregardless iof igender iwhen italking,
isuch ias iplacing ia ihand ion ianother’s ishoulder, ican ioccur ias ia isign
iof iattentiveness iand ifriendliness.
 Personal iSpace: During ia iconversation, ipersonal ispace itends ito ibe
ilimited. iIndeed, iArgentines iusually istand iquite iclose ito ione ianother;
iless ithan ian iarm’s ilength iapart iis icommon. iStanding ior ibacking
iaway ifrom isomeone iwhile ispeaking ican ibe iconsidered irude.

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  Eye iContact: Maintaining ieye icontact iduring iconversation iis ibelieved
ito idemonstrate ia isense iof ihonesty iand iinterest iin ithe iperson iwho iis
ispeaking. Direct eye icontact imay ibe iinterpreted ias iconfrontational iif
ithe itwo ipeople ihave inot igreeted ieach iother iyet.
 Beckoning: The imost icommon iway ito ibeckon isomeone iis iby
iextending ian iarm iwith ione’s ipalm ifacing itowards ithe isky iand
imaking ia iscratching imotion iwith ithe ifingers.
 Gestures: It iis icommon ifor iArgentines ito iuse ihand igestures iin idaily
iconversation ito iaccompany iverbal iconversation. iHowever, isome
igestures ihave inegative iconnotations.
 iFor iexample, iplacing ione’s ihands ion itheir ihips imay ibe iinterpreted
ias iseeking iconfrontation, iand ipointing iwith ithe iindex ifinger iis
iconsidered irude.

F) i i iDescribe ithe icountry’s iculture iusing iHofstede’s imodel iof icultural

idimensions i(Power idistance- ihierarchy, iIndividualism/collectivism,
iMasculine/feminine, iUncertainty iavoidance, iTime)

POWER IDISTANCE

This idimension ideals iwith ithe ifact ithat iall iindividuals iin isocieties iare inot
iequal i– iit iexpresses ithe iattitude iof ithe iculture itowards ithese iinequalities
iamongst ius. iPower iDistance iis idefined ias the iextent ito iwhich ithe iless

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ipowerful imembers iof iinstitutions iand iorganization iwithin ia icountry iexpect
iand iaccept ithat ipower iis idistributed iunequally.

At ia iscore iof i49 iArgentina isits ion ithe ilow iend iof iPDI irankings iof i– iand
ithus ifar ifrom ithe imuch ihigher ivalues ithat icharacterizes iall iother iLatin
iAmerican icountries i(leaving iaside iCosta iRica). iThe isources iof iArgentina´s
ilow iscore ion ithis idimension iis irooted iin ithe imigration iwaves ithat ireached
ithe iRio ide ila iPlata iaround ithe iturn iof ithe ilast icentury. iAround i1900,
iapproximately i6.5 iM. i

INDIVIDUALISM

The ifundamental iissue iaddressed iby ithis idimension iis the idegree iof
iinterdependence ia isociety imaintains iamong iits imembers. It ihas ito ido iwith
iwhether ipeople´s iself-image iis idefined iin iterms iof i“I” ior i“We”. iIndividualist
isocieties ipeople iare isupposed ito ilook iafter ithemselves iand itheir idirect ifamily
ionly. iIn iCollectivist isocieties ipeople ibelong ito i‘in igroups’ ithat itake icare iof
ithem iin iexchange ifor iloyalty.

With ia iscore iof i46, ialso iin ithis idimension iArgentina isits iin ithe imiddle
irankings. iAs ia iconsequence iof ithe iaforementioned imigration iwaves iand ithe
iearly iemergence iof iwide imiddle iclasses, iArgentina iis, iby ifar, ithe imost
iIndividualist iof iall iLatin icountries. i

MASCULINITY

A ihigh iscore i(Masculine) ion ithis idimension iindicates ithat ithe isociety iwill ibe
idriven iby icompetition, iachievement iand isuccess, iwith isuccess ibeing idefined
iby ithe iwinner i/ ibest iin ifield i– ia ivalue isystem ithat istarts iin ischool iand
icontinues ithroughout iorganisational ilife.

A ilow iscore i(Feminine) ion ithe idimension imeans ithat ithe idominant ivalues iin
isociety iare icaring ifor iothers iand iquality iof ilife. iA iFeminine isociety iis ione

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iwhere iquality iof ilife iis ithe isign iof isuccess iand istanding iout ifrom ithe icrowd
iis inot iadmirable.

The ifundamental iissue ihere iis iwhat imotivates ipeople, iwanting ito ibe ithe ibest
i(Masculine) ior iliking iwhat iyou ido i(Feminine).

Argentina iscores i56 ion ithis idimension, ireflecting ithe ipresence iof islightly imore
iMasculine ithan iFeminine ielements. i

UNCERTAINTY IAVOIDANCE

The idimension iUncertainty iAvoidance ihas ito ido iwith ithe iway ithat ia isociety
ideals iwith ithe ifact ithat ithe ifuture ican inever ibe iknown, ithe extent ito iwhich
ithe imembers iof ia iculture ifeel ithreatened iby iambiguous ior iunknown isituations
iand ihave icreated ibeliefs iand iinstitutions ithat itry ito iavoid ithese is ireflected iin
ithe iscore ion iUncertainty iAvoidance.

At i86 iArgentina iscores ivery ihigh ion iUAI i– iand iso ido ithe imajority iof iLatin
iAmerican icountries ithat ibelonged ito ithe iSpanish ikingdom. i i

Long iTerm iOrientation i(Time)

This idimension idescribes how ievery isociety ihas ito imaintain isome ilinks iwith
iits iown ipast iwhile idealing iwith ithe ichallenges iof ithe ipresent iand ifuture, iand
isocieties iprioritise ithese itwo iexistential igoals idifferently.

iNormative isocieties. iwhich iscore ilow ion ithis idimension, ifor iexample, iprefer
ito imaintain itime-honoured itraditions iand inorms iwhile iviewing isocietal ichange
iwith isuspicion. i

Those iwith ia iculture iwhich iscores ihigh, ion ithe iother ihand, itake ia imore
ipragmatic iapproach: ithey iencourage ithrift iand iefforts iin imodern ieducation ias
ia iway ito iprepare ifor ithe ifuture.

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Entry iMode:

The ibest iway ito ienter iargentina iis ithrough iexporting ifor ithe ionce iwho ihas
iless irisk iappetite. iThey ican ianalyse ithe imarket icarefully ibefore iinvesting ia
ihandsome imoney. ithere iis ia ihuge ihunger ifor inewness, iwhich isuggests iit iis
ithe iright itime ito expanding ia ibusiness iin iArgentina.

iArgentina ipaid iits idebt ito ithe iInternational iMonetary iFund. iHowever, ithe
icountry istill ihas ito iagree iterms iwith ithe iParis iClub iand iuntil iit idoes iso,
iexport icredit icould ibe idifficult ito iobtain. iAnother iissue iwhich iyou ishould
iconsider iwhen ideciding ito iset iup ia ibusiness iin iArgentina iis iinflation, iwhich
iremains iat ihigh ilevel. iIn ia icountry iwhich ihas ibeen ithrough itwo icrisis iof ithe
ibanking iand ifinancial isystems iin iless ithan iten iyears, iit iis iobvious ithere iis
ilittle ibank icredit ifor ibusinesses. iTherefore imany imutinational icompanies iare
ileaving iArgentina, ihence iexporting iis ia igood ioption.

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Summary

Argentina iofficially ithe Argentine iRepublic , iis ia icountry iin ithe isouthern ihalf
iof South America. iIt ishares ithe ibulk iof ithe Southern Cone with Chile to ithe
iwest, iand iis ialso ibordered iby Bolivia and Paraguay to ithe inorth, Brazil to ithe
inortheast, Uruguay and ithe iSouth Atlantic Ocean to ithe ieast, iand ithe Drake
Passage to ithe isouth. iArgentina icovers ian iarea iof
i2,780,400 km2 (1,073,500 sq mi), making iit ithe ilargest Spanish-speaking nation iin
ithe iworld. iIt iis ithe second-largest country in South America after Brazil, ithe
ifourth-largest icountry iin ithe Americas, iand ithe eighth-largest country in ithe
iworld. i

Argentina iis ione iof ithe imost biodiverse countries iin ithe iworld hosting ione iof
ithe igreatest ecosystem varieties iin ithe iworld: i15 icontinental izones, i2 imarine
izones, iand ithe iAntarctic iregion iare iall irepresented iin iits iterritory. This ihuge
iecosystem ivariety ihas iled ito ia ibiological idiversity ithat iis iamong ithe iworld's
ilargest:

 9,372 icataloged vascular plant species i(ranked i24th)

 1,038 icataloged ibird ispecies i(ranked i14th)
 375 icataloged mammal species i(ranked i12th)
 338 icataloged reptilian species i(ranked i16th)
 162 icataloged amphibian species i(ranked i19th)

The ioriginal ipampa ihad ivirtually ino itrees; isome iimported ispecies ilike
ithe American sycamore or eucalyptus are ipresent ialong iroads ior iin itowns iand
icountry iestates i(estancias). iThe ionly itree-like iplant inative ito ithe ipampa iis
ithe ievergreen Ombú. iThe isurface isoils iof ithe ipampa iare ia ideep iblack icolor,
iprimarily mollisols, iknown icommonly ias humus. iThis imakes ithe iregion ione iof
ithe imost iagriculturally iproductive ion iEarth; ihowever, ithis iis ialso iresponsible
ifor idecimating imuch iof ithe ioriginal iecosystem, ito imake iway ifor icommercial

36
iagriculture. iThe iwestern ipampas ireceive iless irainfall, ithis dry ipampa is ia iplain
iof ishort igrasses ior steppe.

The National Parks of Argentina make iup ia inetwork iof i35 national iparks in
iArgentina. iThe iparks icover ia ivery ivaried iset iof iterrains iand biotopes,
ifrom Baritú National Park on the northern border with Bolivia to Tierra del Fuego
National Park in ithe ifar isouth iof ithe icontinent. iThe Administración de Parques
Nacionales (National iParks iAdministration) iis ithe iagency ithat ipreserves iand
imanages ithese inational iparks ialong iwith Natural monuments and National
Reserves within ithe icountry.

Argentina ihad ia i2018 Forest Landscape iIntegrity iIndex mean iscore iof i7.21/10,
iranking iit i47th iglobally iout iof i172 icountries.

Argentina ifeatures igeographical ilocations isuch ias ithis iglacier, iknown ias
ithe Perito Moreno Glacier

In igeneral, iArgentina ihas ifour imain iclimate itypes: iwarm, imoderate, iarid, iand
icold, iall idetermined iby ithe iexpanse iacross ilatitude, irange iin ialtitude, iand
irelief ifeatures. iAlthough ithe imost ipopulated iareas iare igenerally temperate,
iArgentina ihas ian iexceptional iamount iof iclimate idiversity,

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BIBLIOGRAPHY:

https://en.wikipedia.org/wiki/Argentina

https://www.oecd.org/countries/argentina/jobs-strategy-ARGENTINA-EN.pdf

https://en.wikipedia.org/wiki/Demographics_of_Argentina

https://tradingeconomics.com/argentina/corruption-index

https://www.forbes.com/sites/forbes-personal-shopper/2021/10/18/luxury-dog-
accessories/?sh=6aa501a073fc

https://www.theglobaleconomy.com/Argentina/wb_political_stability/

https://en.wikipedia.org/wiki/2019_Argentine_general_election

https://santandertrade.com/en/portal/analyse-markets/argentina/reaching-the-
consumers

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Thank you!

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