The Economic Risks Of Argentina - 1013 Words

Argentina has had a very interesting, unpredictable, and faulty economic system is the last century. The country has seen everything from economic superiority in South America to the greatest depression in their current history. Argentina’s economy hit rock bottom in the year of 2002, but in 2012 and the beginning of 2014 Argentina’s government has put into place more strict and reasonable economic policy. (The World FactBook, 2014) This country has the resources to become an emerging economy and join its neighbor, Brazil, in the emerging markets of the world. As of right now, Argentina’s economic growth rate, as measure by GDP (Gross Domestic Product), is trending upwards, but that could be a deceiving trend for companies looking to do business ,and invest, in Argentina. (The World FactBook, 2014) Economic Risks of Doing Business in Argentina Even though Argentina is showing signs of growth, the risk of investing in and doing business in the country is still very high. Euler Hermes, an economic research company, rates the risk level of doing business in Argentina as a D4. (Cazalets, 2014)A D4 rating is the highest risk rating that a country is able to receive. Since this country has such a high risk rating right now, businesses should be cautious and require a high return when investing their assets into the country. If a company is looking for ease of doing business in a South American market, Argentina would be the last country on their list. (World Bank Group, 2014)Show MoreRelatedPolicy Risk of Argentina1307 Words   |  5 Pages Policy risk of Argentina Budgetary policy is lacking of rigor due to the conflict among departments and the restricted import policy. Argentina’s policy remained a controversial conflict between executive department and congress. 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