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Doing Business in Argentina

Business Relations

Business meetings in Argentina should be carefully planned agreement with points of the agenda. Make sure that the meetings lead to action, as the Argentines traditionally see nearly as many opportunities social.

Also allow time for the meeting contacts outside of Argentina office hours. A less clear distinction is made between work and leisure and time with the most profitable business in Argentina is often spent outside the office or factory in restaurants and at barbecues.

We must take care to distinguish between what the Argentine companies offer to supply and what they actually offer. Argentina shares Latin American custom of not wanting to say no, which means it is up to you whether or not they can deliver.

It is important to make sure you give the impression that you are committed to invest and do business in Argentina for the long term, not just an event punctual. This helps break the vicious cycle of broken promises on both sides.

Government & Law

Argentines are very proud of the fact that Argentina now has a functioning democracy. However, care must be taken in any transaction with the government officials. Argentina still has a huge amount of bureaucracy and process that takes time. Corruption at all levels of the bureaucracy is still common.

Remember to use local expertise in legal matters. Due to recent changes in business and the many years of government control of industry and commerce, it is often difficult to find the best and most appropriate way to do business.

It is not advisable to approach the subject of the military government and be very careful to avoid the subject of the islands Falklands like almost all Argentines are convinced they should have sovereignty over the islands.

Argentina Heritage

Argentina is very proud of her European heritage. Most of the population, especially in the capital city of Buenos Aires, have ancestors who immigrated in Argentina between the late 19th century and the middle of this century.

Aires Aires is not only a Spanish city, but also has strong traditions inherited from Italy, Germany and Eastern Europe. After New York is the city with the largest Jewish presence in the Americas.

However, it is extremely important not to confuse Buenos Aires with all of Argentina. Although a third of all Argentines live in Greater Buenos Aires, Argentine interior is very different with more traditional means and a greater presence of mestizo and indigenous features.

Do not forget that Argentina should not be confused with the rest of America America. The 35 million Argentines are as different as British Mexicans are Russians. They share the Spanish language, but often even that is spoken quite differently.

The The business environment

Argentine industry and business has been going through a process of great change in the 1990s. After have been protected and inward-looking for many years, Argentine companies are just beginning to learn they must compete nationally and internationally.

Many local businesses contain a mixture of traditional and modern – they are often family and likely to have much more typewriters than computers running!

Much of the Argentine industry is still based on agriculture and agricultural products. The companies involved in heavy industry, such as automotive or construction, are largely of interest foreigners.

Do take note of the fact that Argentina is now a dynamic part of the MERCOSUR regional group of countries. (The other members are Brazil, Paraguay and Uruguay). Argentina hopes to bring technologically advanced part of this market, because it usually can not compete with Brazil in terms of scale.

The business environment in Argentina was thrown into turmoil in late 2001. After a decade economic stability, with a peso worth a dollar U.S., this exchange rate was abandoned, and the local currency left float freely. This caused a massive withdrawal of capital from Argentina, and this has caused a banking and financial crisis. The long-term planning became extremely difficult, and prospects for foreign investment is very uncertain. Extreme caution is advised, because the uncertainty economy is likely to last several months.

Original article http://www.intercultural-training.co.uk/articles/business/argentina_business.asp www.intercultural-training.co.uk

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Austrian Economics and the Business Cycle | Robert P. Murphy