Business
Business Profile
At the turn of the last century, Argentina had one of the richest economies in the world and, as the country’s major trading centre, Buenos Aires was the biggest city in Latin America. At the beginning of this century, however, the economy is in turmoil and the country is facing a deepening recession. In 2001, GDP was down 4.5% and unemployment reached 16.4%. Argentina’s economic crisis hit global headlines in December 2001, when the country announced the largest debt default in history and later devalued the Peso. Previously linked to the US Dollar, the Argentine Peso was allowed to float freely on world markets and is now almost a quarter of its previous value. Bank accounts were frozen, businesses went bust and unemployment rose sharply. Almost half the population is deemed to be living below the poverty line.
But despite its current problems, Argentina is a country rich in natural resources and economic activity is centred around the capital. The federal district and the surrounding provinces of Buenos Aires, Córdoba and Santa Fe account for 80% of the country’s industrial production and for 92% of its agricultural output. Beef is no longer the highly exportable commodity that it once was but the country is still a major player in the export of agricultural produce, such as tobacco, tea, wheat and sunflower seeds. Privatisation and deregulation in the early 1990s led to a growth in the export of oil and gas. Key industries include food processing, textiles, chemicals, printing, consumer durables, metalworking and motor vehicles. Buenos Aires is at the heart of the country’s finance and service sector, which now accounts for around 60% of GDP.
Under the leadership of Carlos Menem (1989-1999), the implementation of free market policies and privatisation of state-owned businesses encouraged both local and foreign investment. Argentina is perhaps the Latin American country with the greatest understanding of European and US business culture and the country and its capital express a high demand for foreign services and products. In recent times, business links with Japan and European Union nation countries have greatly increased. Multinational companies based in the city include IBM, Telefonica, Telecom, Movicom (Bellsouth), AT&T, Microsoft, Wal-Mart, Unilever and Xerox. Businesses are generally located in the downtown Centro area of the city but some of the bigger companies have relocated to the modern skyscrapers that have sprung up in nearby Puerto Madero.
Business Etiquette
Businesspeople in Buenos Aires are very conscious of status and expect to conduct any business dealings with people of an equal footing. Business cards are commonly exchanged by way of introduction and punctuality is important. In keeping with the general style of the city, smart dress is appropriate as is a high degree of respect. Whenever possible, business should be conducted in Spanish although many Argentinean businesspeople do speak English as a second language.
Further information can be obtained from the Cámara Argentina de Comercio (Chamber of Commerce) (tel: (011) 5300 9000; e-mail: centroservicios@cac.com.ar; website: www.cac.com.ar).
Normal business hours are Monday-Friday 0900-1900 and a siesta doesn’t usually feature in Buenos Aires’s business community. In general, conduct is similar to any large European city, with business deals often conducted over lunch.
|
