U S Vs Argentina
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Written Assignment # 1
United States Vs. Argentina
Until recently, many European and U.S. companies considered Argentina to be an ideal Latin American country for business. Argentina has a highly educated workforce, good natural resources, and, historically, has been a fiercely democratic nation. But underlying Argentina's apparent economic success was a massive foreign debt load required to prop up its overvalued currency. Last December, the Argentine government gave up the fight, defaulting on its international obligations: the largest ever sovereign-debt default. At the same time, the government released the peso from its one-dollar-to-peso lock with the United States, allowing its currency to float freely on world markets. While the peso devaluation dealt a severe blow to domestic businesses and foreign companies invested in Argentina, it did carry with it several major benefits for international investors, including:
Foreign companies wishing to find an entry into the country may find Argentinean companies now for sale at bargain prices.
The downturn in the economy has created a high percentage of educated unemployed or underemployed, willing to work for lower wages to make ends meet...