Argentina Essay

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I. INTRODUCTION Argentina lives in a democracy since 1986. Before this year lived it under a military regime. In the nineties under the presidency of
Menem the country experienced a great increase in the liberalization of trade.
Argentina has a free market economic system. Due to the recent privatization program, the State now has a very limited role in the economy. According to the Competitiveness Report of the World Economic Forum Argentina is classified as one of the most open, least protectionist countries in the world.
Its currency is convertible to the US dollars and there is total freedom for moving capital internationally. Argentina has conducted one of the most intensive privatization programs in the world. The telephone company,
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Imports from Brazil represent 35 percent of the local import market. The gains in imports with exports from Brazil boost employment in Argentina by a 30 percent and bilateral trade with Brazil as well as nine fold growth in investments. (States-USA). See AUTO
PARTS/SERVECE table in appendix. In the period of July 1997-June 1998
Argentina exported wheat to the following countries: Brazil, Turkey, Egypt,
Iran, Peru, Indonesia, Sir Lanka, Jordan, Tunisia and Kenya. Argentina experiences “inter” trade with these countries because it has the comparative advantage of producing wheat at a cheap cost. Soils in Argentina are fertile and farmers do not need to use as much fertilizers as in the case of European farms. European farms have been harvested for years. As a consequence of this farms need to be fertilized or remain unused for a period of four years to produce crops. Argentina engages in “inter” trade on the exports of corn to the following counties: Japan, Brazil, Egypt, Taiwan, Peru, Chile, Spain, Iran,
Venezuela, and Colombia. Argentina exports corn to Brazil because it does not produce enough corn to supply its domestic demand. Argentina also produces “Inter” trade exports of sorghum with Japan, Mexico, Taiwan,
Colombia, Norway, Spain, and Chile. Argentina and Brazil benefit from trade among themselves because each country exports something in which it does not have the comparative advantage or in

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