From a cultural perspective, Argentina is a beautiful country with a rich history of Latin and European culture that earned it the nickname “The Jewel of South America”. I thoroughly enjoyed my time in this country working as a non-profit intern, learning a lot about small businesses, the Argentine municipality, and their culture.
I realize some of this information may be out to date, but I thought it would be useful to use a case study of Argentina to analyze the ease of business for foreigners in a country I have spent a fair amount of time in.
Argentina is one of the largest nations in Latin America. With a population of 41.5 million, the nation has a large industrial working force and a developing economy that has experienced setbacks in recent years.
This being said, it is a large nation with a large economy.
When we look at the PESTEL analysis, I think it’s most important to focus on the economic and political sides of the coin. There are very volatile in the global south and need to be monitored by investors for stability.
Argentina has just come out from the rule of former President Cristina Kirchner. Under her administration, the government became extremely indebted due to corruption, mismanagement of money, failing socialist programs, and a protectionist trade status.
This and government subsidies made a mess for the incoming president Mauricio Macri who’s economically liberal policies now clash with the established leftist populism. Facing an indebted government with a shrinking economy, Macri has slashed away at many unencessart programs in order to reduce spending, while eliminating the state sponsored 5-1 peso ratio. As a result of this, inflation has soared while subsidies to companies have been all but cut off, leaving the people reeling in economic shock as they adjust to a system with less welfare and subsidies.
Due to these recent factors, the people are dealing with higher prices, which now is causing harm to businesses as they soar over the market equilibrium.
An American moving down there would have the best luck working with an international firm that is well established at this moment. Unfortunately, Argentina does not have the economic stability that welcomes foreign investors at this moment. The political turmoil makes it a risky area to invest to at the moment. Working as an international brings both risk and reward, Argentina is no exception. I loved my time down here and would like to go back and maybe even work there someday.