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Argentina Country Project

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Bryce Greenfield

on 8 May 2013

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Transcript of Argentina Country Project

Argentina About Argentina Economic, Political, and Legal Structure by: Romain Barbaresco, Nancy Escalera, Bryce Greenfield, Tina Jones, and Ulfat Saif 1516 Juan Diaz De Solis

1580 Buenos Aires is established

1810 Overthrow of the king of
Spain by Napoleon

1816 Argentina declare
independence 1853 Becomes a republic after
adopting a constitution

1943 Juan Peron rises to power

1982 Argentina goes to war with
Britain

1991 Peso is equal to the value of
the US dollar History Location Data Located in South America Population: 42,192,494 Capital: Buenos Aires Area: 1,073,518 sq. miles
(2,780,400 sq. km) Bordering Countries:
Chile, Brazil, Uruguay, Paraguay, and Bolivia Coastline: 3,100 miles (4,989 km) Highest Point: Aconcagua 22,834 ft Lowest Point: Laguna del Carbon -344 ft Political Leadership Last Election: October 2011 Christina Fernandez de Kirchner Argentina's first elected
female president

Second woman to hold
Presidency

Re-elected for second
term Cultural Analysis Culture Acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior (Luthans, Doh. 108)
– Characteristics. Learned, Shared, Trans-generational
– Cultural Determinants. Background, Descent, Language, Religion, Food, Traditions, etc. Values “Basic convictions that people have regarding what is right and wrong, good and bad, important and unimportant” (Luthans, Doh. P. 113). Family. Extended families are still well-known for Argentine’s society (Kwintessential.co.uk). Prosperity, education, family, personal relations. Hofstede's Cultural Dimensions – Power Distance (49%)
Status, appearance, titles

– Individualism (46 %)
• #1 in all Latin America-migration influences
• Collectivist society traits-family values prevail

– Masculinity (56%)
• Competition, achievement, success

– Uncertainty Avoidance (86%)
• Avoid risk

(Geert-hofstede.com) Business Etiquette 1.) Relationships and communication

– Relationship-driven culture, network of family and friends
– Face-to-face meetings
– Authority- respect
– Same level-informal 2.) Business Meeting Etiquette

– Make appointments 1 or 2 weeks in advance by email or telephone
– Avoid January, February, July, and December
– Arrive on time for meeting but expect waiting 3.) Business Negotiations

– Preference of Similar status

– Hierarchy is important

– Business cards in Spanish/English

– Spanish side faces the recipient (Kwintessential.co.uk) Definition The Service/Product Proposal :
CUSTOMIZED SOFTWARE -The customer asks for a specific software

-Our team (experts in computing) creates it

-After the product (software) is sold, some adjustments can be made if the customer is not entirely satisfied

-Possibility of assistance with, maintenance, or updating of the software on demand (as supplemental services) Our Business Plan Economic System Benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. agriculture: 5%
industry: 23%
services: 72% (2009 est.) Agriculture - products:

Sunflower seeds, lemons, soybeans, grapes, corn, tobacco, peanuts, tea, wheat; livestock

Industries:

Food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, steel Exports Imports $85.36 billion $67.33 billion soybeans and derivatives, petroleum and gas, vehicles, corn, wheat machinery, motor vehicles, petroleum and natural gas, organic chemicals, plastics Treatment of Foreign Business Foreign investment is warmly welcomed in Argentina. Little to no paperwork, no registration of investments, no discrimination against foreigners, no performance requirements set by government. MNCs face the same tax liabilities as local firms. Foreigners may trade and do business freely. International Trade Under-Secretariat promotes and coordinates foreign investment opportunities Political and Legal System Generally accepted behavior, which may be open to dispute. The professional behavior may be based on custom or morality. There are social guidelines and manners to be followed in business situations when dealing with others. An example of a lack of business etiquette is when a salesperson is late in visiting a client. Branches of Government Republic with 3 branches Bicameral National Congress Senate-72 seats elected by direct vote
Chamber of Deputies-257 seats elected by direct vote Head of Government President and Vice President-elected on same ticket by popular vote Supreme Court Appointed by the President with approval by Congress System of Laws National Constitution instituted in 1853

Each of the 23 provinces have their own constitution

Civil law based on West European legal system

Each is judged on its own merit according to law

Judges can use precedence, but not obligated to apply stare decisiscase Challenges Opportunities Financial System 64 retail and investment banks, and
16 non-banking financial entities. The local financial system is healthy with standards on par with the highest ones in the region. High potential for development. High solvency and efficiency Low delinquency Unemployment History Labor force - by occupation: Fell from 21.5% in 2002 to 7.2% in 2012 PDI (40%): Liberty, equality, upward communication

IDV (91): People look after themselves

UAI (46): Accept risk ideas, innovation, willingness to try something new Benefits of our Product and Service Focused on serving small and medium sized businesses Opportunities Primary Language: Spanish Primary Religion: Catholic http://www.wexportar.com.ar/investment.htm Appropriate offer for appropriate demand Services industry is largest portion of companies https://www.cia.gov/library/publications/the-world-factbook/geos/ar.html Pope Francis: Jorge Mario Bergoglio Slowing economic GDP growth down to 2-4% from 8%

Due to lower growth in neighboring Brazil

Anticipated lower revenue from exports, import and foreign exchange restrictions

Inflationary pressures

Import & foreign exchange restrictions

Reports of production slow-downs and bottlenecks resulting from delays in the granting import licenses

Uncertainty in the business community Provide many services for investors

Agriculture industry

Development of renewable energies, biotechnology, software & creative industries

Main tourism destination in Latin America

Argentina wants to empower SMEs to enter the USA market

Creating software and business IT assistance for SMEs to compete globally in USA and other regions R&D projects: creation, design, development, production, implementation & fine-tuning of software systems
Higher education programs for worker training
Programs to improve quality in the processes
Assistance programs to create new enterprises Software Industry Fiduciary Fund Thank you!
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