Country Factor Analysis Argentina

4733 words - 19 pages

Executive SummaryInternational business is of vital part for pharmaceutical company to expand business to catch more market of the world. Report reflects country's different factors related to business for pharmaceutical industry. Argentina was one of the wealthiest countries during 18th and 19th century, but due to political instability leads it to financial crisis. Legal system was not transperant.Economic developments were ceased. But after economic reforms and new constitution came in exist, again it shows the positive sign. Since last few years it is struggling for improvements in all sectors.GDP is improving slowly and steadily. Inflation is now comparatively under control. New ...view middle of the document...

Company ProfileName: PRATEETI Pharmaceuticals Pty Ltd.Firm Type: Private CompanyProduct: Drugs and medicinesProduct type: Antibiotic MedicinesMain Use: Antibacterial infectionsCountry Selection:Currently in Latin America, Argentina has highest GDP and low inflation compared to other Latin American countries. After new constitution in 1994 and after economical reforms in 1990 company has good scope and opportunity to start business there. Factors needed to be considered for doing business in Argentina are discussed below with in-depth analysis.Economic EnvironmentArgentina was the one of the richest country in the world during 18th and 19th century. After military intervention economic condition diluted, development was inefficient and incomplete, foreign investment was restricted. Country moved back to democracy in 1983. After intense reform during 1990s, Argentina returned to market oriented economy. Towards the end of 2001, Argentina faced a grave economic crisis , led to bloody riaots.In 2003,again after political stability, argentia's economy boomed. But, Still Argentina is facing weak economic climate (Whittle, Woznick, Shippy, Hinkelman, 1996).CostsLabor MarketFor Pharmaceutical industry skilled labor force is most important. In Argentina skilled and cheap labor force is available compared to other developed countries. But still wage rate is high for industries which need high skilled labor. This can lead to high total cost for the company. World Bank's Employment Laws index score of 66.0 for Argentina indicates that regulations are tighter. (Business forecast report, 2005).Rigid rules and regulations about labors are negative for company. Labor unions are still active, but still government is revising labor rules to attract foreign investment.High Interest rates are depressing low economic activity.InfrastructureRoad, rail, telecommunication, transport, electricity is not much developed, so company has to bear more cost for that. Improvements had started after 1990s reforms but at slower pace. "Telecommunications Liberalization Plan" in 1998 was good sign of improvement.Financial infrastructureSecurities and accounting standards in Argentina are transparent and consistent with international norms. Banks, cash machines and currency exchanges are plentiful in Argentina. After finally abandoning a fixed exchange rate in January 2002, Argentina now has a floating exchange rate. (Argentina country review, 2005-Investment overview)Income distribution is uneven and it is more toward rich class people but it is more progressive compared to other Latin American countries. Low income people may not afford medicine.TaxBecause of the high tariff rate and other extra taxes causes international company to think again to invest. But tax reforms are continuing since 1990.CompetitorsAs mostly local companies are in the drugs market and they are selling at lower price, so company has to face tough price competition. (Argentina Business Forecast Report,...

Find Another Essay On Country Factor Analysis-Argentina

Power Shirts Essay

3436 words - 14 pages Team 17 was responsible for expanding Power Shirts into the international market. Our countries are Argentina, Brazil, Chile, and Peru. There will be a comparison and discussion of the key drivers most necessary for choosing a host market. These key drivers are GDP growth, number of tourists per year, import tariffs, population of largest city, urbanization, and average temperature. An environmental analysis of the chosen country will determine the

Environmental Analysis: Argentina

1642 words - 7 pages analysis of the area. This paper provides some insight into the global, regional, and country analysis required by Red Bull. In addition, this paper will describe the Red Bull organization and the product being introduced.Global current events analysisIn order for Red Bull to become a competing force in the Argentina market, several factors have to be analyzed. Current events in the world are significant to the preparation of expanding a product

Crisis In Argentina

1715 words - 7 pages in the last two decades. The country is in its third year of recession, unemployment stands at 15%, foreign investment is wavering, and Argentina is struggling to pay back $124-billion in foreign debt.What went wrong? Today's crisis can be partially attributed to the monetary policy introduced in 1991 by Domingo Cavallo, the economy minister, who pegged the peso one-to-one with the U.S. dollar. While it succeeded in curbing inflation and providing

The Argentine Financial Crisis

2460 words - 10 pages . To better understand the aspects of the issue at hand, an in-depth analysis of the whole situation will follow. This will allow us to analyze, and hopefully prevent atrocities like this form happening again. Moreover, we will be able to distinguish how this financial crisis came to be in what used to be the richest country in South America; Argentina.1990 - 1997_____________________________________________In 1990, Argentina was plagued with

Argentina risk country

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

Cry for Argentina

2292 words - 9 pages ; moreover nobody in Argentina can hope anything and nobody can plan their future.It is sure that Domingo is not the only the one. Argentina, whose economy was the tenth biggest in the world and who were the seventh biggest exporter, with an economy twice as big as Mexico's and twenty five times bigger than Brazil's during 1910-1930, was as rich as any West European country in the 1950s. But now it can't maintain its connections with the world

Latin America

1898 words - 8 pages America in the 1960’s. O’Donnell helps his readers advance their existing knowledge of bureaucratic authoritarianism in Argentina because he deepens and adds a more in-depth analysis of the series of arguments about dependant capitalist development and social and political change in Latin America. He advanced the dependency theory tradition by offering his readers a specific argument about the origins of a particularly harsh and technocratic kind

The essey is about crisis in Argentina

3269 words - 13 pages crisis had also a huge impact on the worldwide economy, due to the fact that a lot of foreign investment was in the country and a lot of multinational companies suffered by this crisis. As an example, we have the Spanish Bank Santander that had a huge loss and closed it doors in Argentina. We may say that the situation in Latin America is very delicate. Uruguay is already paying the price for a close regional tie. Devaluation in Brazil and

Paginas Amarelas Case Study

7571 words - 30 pages country's operations individually is to allow both the systematic and unsystematic risks that affect the operations to be separated and estimated for each country. This is simply for accuracy reasons, as different countries expose Paginas Amarelas to different risks, or in some cases the same risk but to a different extent. Therefore a growth rate and WACC will be calculated for Argentina, Brazil and Chile. The growth rate will determine the future

The Limits to Macroeconomic Policy

1454 words - 6 pages -5 percent of its GDP (Gerber, 2011). Under normal conditions Argentina would be expected to devalue currency in order to reduce the current balance deficit and attract exportation opportunities. Argentina’s pegged system, to the dollar, created a dilemma where by responding with devaluation of the peso, could put the country in an insolvent state. Why was Devaluing the Peso a Problem for Argentina during the East Asis Crisis? To help

A Free-Trade Agreement Between the US and Europe

1745 words - 7 pages Global Perspectives a) Sino-Russian China and Russia are major trading partners specifically in areas like capital, resources, technology and manpower.They are aiming to increase bilateral trade between them; however with the economic downturn they might face some challenges in doing so. b) Chile and Argentina Argentina is one of the top vegetable oil producers in the world-due to low domestic consumption and high productivity- with Chile as

Similar Essays

Argentina Economic Risk Essay

689 words - 3 pages that build the economic country risk, the factors were multiplied by the weight depending on our subjective opinion about how this factor will affect the Smartphone MNC in Argentina (Commerce Solutions, n.d.). As showed in table 1, the analysis results in a total risk of 989% compared to when investing in the U.S., the inflation was the element with more weight since this goes in detriment of customers purchasing power. The second element with the

Positive And Negative Impact Of Immigration In Buenos Aires

1052 words - 4 pages ( misspecification , and endogeneity heterogeneity ) , market forces in specific cases (the area of anti-factor share approach4) or institutional factors has not been established. Meta-analysis of international studies ( Longhi and 2004) defines general conclusions that are likely to apply also to Argentina. With overall average -0.119 standard deviations of wages , the authors emphasize that the more downstream effects in a tight job market

Red Bull Inc And The Country Risk/Strategic Planning For Argentina

3652 words - 15 pages in restoring confidence and regaining control from corruption. Early reforms of the Supreme Court and police have lost momentum and have caused the government to move more cautiously going forward. Probably the most immediate regulatory risk to businesses is due to mandated price agreements used by government to combat inflation (Viewswire: Argentina, 2006).Red Bull sees Argentina as a country poised for a great economic turn-around. Indicators

Policy Risk Essay

1344 words - 6 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. Because the Kirchner government enjoys a high popularity and controls the majority seats in congress, it passed some controversial legislation, and those actions bring criticism within the country. For instance, in