• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Argentina Economic Analysis

Extracts from this document...

Introduction

Insight into Argentina and Australia: Australia's market economy is thriving with a GDP per capita that is on par with other developed economies, while Argentina is classified as a Secondary emerging market by the World Bank. Australia has maintained economic growth over the last 16 years, driven by high confidence, high employment and increased demand for its export commodities. Traditionally, Argentina has been THE TOP Latin American country. However, due to the long economic, political and social slumps, indicators have significantly worsened. The middle-class has shrunk and numbers living below the poverty line sadly proliferate. In spite of the negative conjuncture, Argentina still preserves favourable indicators. Both Argentina and Australia have high degrees of civil rights; their constitutions provide and promote freedom of speech. Spiritual standards are practiced freely, movement is not restricted and the press are unregulated. Gender equality in Australia is guaranteed through legislations such as the "Sex Discrimination Act 1984" which 'aims to eliminate discrimination and sexual harassment and promote greater equality in all aspects of the Australian community.' Various anti-discrimination laws ensure that workers receive the same wage and benefits. Gender Equality, along with in Argentina has also significantly advanced but traditional social patterns continue to undermine their participation in labour. ...read more.

Middle

Economic History: In Australia's modified market economy, Government Intervention ensures a better outcome for society. They provide necessary infrastructure and collective goods which would be unfeasible for private enterprises to provide due to costs involved, and regulate certain aspects of economic activity to ensure markets operate competitively and with fairness. Since 1980, Australia has undergone a series of macroeconomic reforms; reduction of high tariffs and quotas, floating of AUS$, privatisation of public entities and deregulation of financial sector for foreign liberal access in Australia. This was in response to the globalisation of world trade; in order to create markets and business opportunities for Australia. Australia is part of many unilateral trade agreements (USA, Singapore, NZ) and according to the Commonwealth Department of Foreign Affairs and Trade, Australia "has a sound, stable and modern institutional structure that provides certainty to businesses and offers a welcoming destination for investment. Australia also has low barriers to trade and investment. Competition is substantial across the economy." The Argentine Economy is considered rather volatile (due to recurring economic crises, continual persistent account deficits, and high inflationary rates) and constant Government monitoring and intervention is essential to keep it afloat. ...read more.

Conclusion

Development of the Secondary Sector (20% labour force, 30% exports, 23% GDP) especially chemical production, food processing and steel production, in the Australian economy has been influenced by Australia's domestic market and geographical isolation. Coupled with policy to provide protection for domestic producers through high tariffs and quotas, manufacturing industries in Australia have mainly focused on providing goods for locals rather than for export. Manufacturers have struggled from competition from rapidly developing Asian industries, and many manufactured products (cars, durable goods) are now replaced by 'import-substitutes'. Recently, the Australian tertiary sector (75% of labour, 25% of exports, 70% GDP) has experienced stable growth particularly in tourism, retail, and finance. Communications and transports services are major constituents but due to the huge capital costs involved with providing these services to the dispersed population, governments have funded these services predominantly. However since the microeconomic reforms in 1980, many of these services have been privatised (Telstra). Growth in the Argentinean service sector has been attributed to economic liberalizations in 80s and 90s. Telecommunications and financial services have seen dramatic expansions due to foreign investment in these areas. Certain segments, however, have had their growth restricted such as retail, as recent recessions have constrained consumer spending. Despite this, the Argentinean Tertiary Sector is still the biggest contributor to total GDP. 1237 words ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The International Monetary Fund And Global Economic Crises

    The IMF in the context of Argentine Crisis What factors led to the crisis in Argentina? 1. Increase in public sector indebtedness 2. Low share and high concentration of exports 3. Reliance on external savings 4. Lack of labour market flexibility 5.

  2. Retailing In India - A Government Policy Perspective

    Similarly China attracts FDI equal to 3.8 per cent of its GDP. Thailand, which has a relatively low FDI-GDP ratio among the major developing country recipients of FDI, had a ratio four times that of India in 2000. This gap probably narrowed in 2001 and could narrow further in 2002

  1. US Financial Crisis vs. Economic Crisis

    But AIG is in financial difficulty as the Fed fears that the company in May not pay all the insurance policies sold. And the failure of AIG would pay for losses for banks (and others) who have acquired the insurance and the loss of more added to the already staggering losses suffered by banks.

  2. Sports manufacturers

    The strong departments will surely capitalize on the trends of tomorrow if their efforts are successful. * Increasing financial recovery in overseas markets proves to be an area of expansion for the athletic footwear and apparel industry. * E-tailing, or customer-designed internet merchandise, is threatening the traditional distribution channels, thus eliminating the "middle-man" distributors and allowing for increasing profitability.

  1. Toyota Motor Company Limited

    It sold 18,000 vehicles in fiscal 2002. Toyota plans to continue bolstering its manufacturing base in North America with a view to achieving production capacity of 1.45 million vehicles during 2003. As part of these efforts, it is currently constructing a plant in Alabama to supply V8 engines for the

  2. Free essay

    Globalisation & changing career patterns

    I know full well that the client would not be happy with a service manager running the service from a different county. But the overall organisational strategy may make our beliefs irrelevant. What is an Emerging Market Economy? In the globalised world of today, companies are often looking for new opportunities to develop and expand their products and services.

  1. Creating a Limited Liability Co. to import coffee into Ukraine directly. Economic and financial ...

    That's why there is also some uncertainty in future earnings, liabilities and assets values. Although foreign licensing adds some problems, it gives an opportunity to locate close to the customer base, hence, achieve exploitation benefits and close control - a direct presence in the market.

  2. An Empirical Investigation into the Causes and Effects of Liquidity in Emerging

    Another interesting relationship they highlight is that unexpected decreases (increases) in the Federal Fund interest rate have an ameliorative (adverse) effect on liquidity as well as volatility. 3. Theoretical framework and variable selection The theoretical underpinning for this paper is that emerging markets and mature financial markets are more integrated

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work