Argentina Risk Country Essay

4205 words - 17 pages

COUNTRY RISK WHEN ENTER ARGENTINA MARKETSTUDENT: DAO TRUNG SONSTUDENT CODE: MA2N0230Country risk refers to the risk of investing in a country, dependent on changes in the business environment that may adversely affect operating profits or the value of assets in a specific country. For example, financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribute to companies' operational risks. This term is also sometimes referred to as political risk; however, country risk is a more general term that generally refers only to risks affecting all companies operating within a particular country.Political risk analysis providers and credit rating agencies use different methodologies to assess and rate countries' comparative risk exposure. Credit rating agencies tend to use quantitative econometric models and focus on financial analysis, whereas political risk providers tend to use qualitative methods, focusing on political analysis. However, there is no consensus on methodology in assessing credit and political risks.Overview of ArgentinaArgentina is a federal republic located in southeastern South America. Covering most of the Southern Cone, it is bordered by Bolivia and Paraguay to the north; Brazil to the northeast; Uruguay and South Atlantic Ocean to the east; Chile to the west and the Drake Passage to the South.With a mainland area of 2,780,400 km2 , Argentina is the eighth-largest country in the world, the second largest in Latin America and the largest Spanish-speaking nation. Argentina claims sovereignty over part of Antarctica, the Falkland Islands , South Georgia and the South Sandwich Islands.A historical and current middle power and a prominent Latin American and Southern Cone regional power, Argentina is one of the G-15 and G-20 major economies and Latin America's third-largest. It is also a founding member of the United Nations, WBG, WTO, Mercosur, UNASUR, CELAC and OEI. Because of its stability, market size and increasing share of the high-tech sector, Argentina is classed by investors as a middle emerging economy with a "very high" rating on the Human Development Index.The earliest recorded human presence in the area now known as Argentina is dated from the Paleolithic period. The Spanish colonization began in 1512. Argentina rose as the successor state of the Viceroyalty of the Río de la Plata, a Spanish overseas colony founded in 1776. The declaration and fight for independence (1810-1818) was followed by an extended civil war that lasted until 1861, which ended with the country's reorganization as a federation of provinces with Buenos Aires as its capital city. From then on-while massive European immigration waves radically reshaped its cultural and demographic outlook-Argentina enjoyed an historically almost-unparalleled increase in prosperity: by the early 20th century it already ranked as the seventh wealthiest developed...

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