Brief History by lonyoo



   “Argentina is a country gifted with such
abundant natural resources that it could be one
     of the world’s wealthiest nations.”

     Dun and Bradstreet’s Guide to Doing Business Around the World
                    Brief History
Argentina was originally colonized by the Spanish.
The colonists declared Independence from Spain in 1816.
A Federal Constitution established the Republic of Argentina in
Argentina’s abundant natural resources brought droves of
immigrants during the late 19th and early 20th centuries.
The Great Depression of the 1930s began a period in Argentine
history full of political unrest and economic deterioration.
An era of terror, military coups, and dictatorships lasted until
1983, when the constitutional government once again regained
Through privatization and deregulation of virtually all
industries, Argentina has been able to open its doors and compete
on world markets.
             FYI about Argentina
Argentines worldwide share a strong national culture.
National Language: Spanish
Argentina is readily accessible to both European and American
visitors, for business or pleasure.
However, don’t be surprised to hear English, German, Italian,
and French being spoken. A large amount of Argentine
businesspeople speak English.
National Sport: Futból (Soccer)
Land of the Tango
Argentina is divided into two main rivalries, the capital and the
interior. During colonial times this rivalry was militant.
The capital, Buenos Aires, is the World’s 10th largest city and is
the cultural, economic, political, and social center for all of
Argentine folklore and custom revolves around the Gaucho.
          Argentine Economy
 Mineral and Energy                  Business services
  Resources                           Manufacturing
 Agriculture, forestry, and

                      Doing Business in Argentina
Hofstede’s Four Dimensions in
 Power Distance                        Individualism
   -High                                 -evolving towards an
                                            individualistic culture
 Uncertainty Avoidance                 Masculinity
   -High                                 -Argentine culture still has a hint
                                            of the days of the Tango

          Dun and Bradstreet’s Guide to Doing Business Around the World
           Argentine Work Ethic
 The attitude of the workforce is a reflection of the high
  level of education
       -Diligent and ambitious
       -Highly trained

  Craighead's International Business, Travel, and Relocation Guide to 81 Countries, 1998-99
                 Hours Worked
 Legislation establishes that ordinary working hours may not exceed
  8 hours per day, or 48 hours per week
 Saturday afternoon and Sunday are obligatory rest days
 Labor unions can arrange shorter working hours per week and full
  weekend of rest
 Overtime normally permitted

                       Doing Business in Argentina, 1995
Power Structure and Hierarchy
   Narrow span of control.
   “Top down” manner is used in dealing with
  important decisions.
   Employee-employer relationship is

        Craighead's International Business, Travel, and Relocation Guide
         General Labor Facts
 Labor force estimated at 12.4 million
 Skilled and semiskilled labor pool is available
 Employer/Employee relations established by law
 Strong labor unions present, generally organized by

           Craighead's International Business, Travel, and Relocation
           Wages and Salaries
Average Monthly Wages and Salaries
(Approximately, in US Dollars)

 Skilled : $450
 Unskilled : $350
 Managers and
  Professionals : $1000 - $5000

                     Doing Business in Argentina, 1995
      Additional Wage Benefits
 All employees are entitled to a government established
  minimum wage
 Family allowances for immediate dependants
 Grants for marriage, maternity, and schooling

                  Doing Business in Argentina, 1995
                  Fringe Benefits
 Low price meals are often provided by large employers

 Employers located at a distance from adequate public-
  transport routes provide transportation from established points

 Rental housing or assistance in building their own homes is
  provided to employees whose workplaces are too far from town
  for daily commuting

             Craighead's International Business, Travel, and Relocation
 Strong Union movement, particularly in the following industries:
       - Metallurgical
       - Automobile
       - Banking
       - State employees
 Membership is voluntary and protected by law
 Union elections and collective bargaining permitted
 Right to strike is upheld, but conditioned by law

                      Doing Business in Argentina, 1995
                Labor Issues
    Equal Opportunities                         Health and Safety

 Racial, religious, and               Generally part of
  other discriminatory                  working conditions
  practices are seldom                  negotiated between
  found                                 unions and employers
 Not an active or latent

                   Doing Business in Argentina, 1995
          Business Meetings

    Appointments                            Greetings and Introductions

 Advance appointments                           Verbal greetings are
  are essential.                                  expected.

 Arrive on time, but expect                     New acquaintances will
  to be kept waiting.                             shake hands and nod

                                                 Argentines are very

        Craighead's International Business, Travel, and Relocation Guide

 Argentines generally like to have a period of “small
 talk” before negotiating.

 Argentines prefer to negotiate in person.

 Patience is important.

           Craighead's International Business, Travel, and Relocation Guide
            Conflict Resolution
 Studies show that Argentines prefer to resolve conflict
  in the following ways:
       -advising is the most preferred
       -adversarial and autocratic means
       -providing impetus and avoidance

          Group and Organization Management, Thousand Oaks, Jun 1999
        Social Security System
 Employer Contribution : 16% of payroll goes towards
  the financing of the state benefits
 Employee Contribution : 11% individual deductions on
  wages and salaries is paid into personal savings funds
 Upon retirement, workers will acquire payment from
  the state known as the “basic universal benefit.”
 Must be able to show 30 years of payment into the
  pension system

                  Doing Business in Argentina, 1995
       Business Entertainment

 Argentine business people enjoy the socialization
 period before business dealings.
 Business meals are popular and normally held in
 The exchange of gifts and favors is common in

          Craighead's International Business, Travel, and Relocation Guide
          Foreign Investment
 Foreign investment is essential to economic growth
 Foreign companies can invest without registration or
  government approval
 U.S. investment in Argentina has increased from US $
  2.7 Billion in 1991 to US $ 14 Billion in 1998

         Dun and Bradstreet’s Guide to Doing Business Around the world
Benefits to Foreign Investment
 Zero Bureaucracy:                         Extra Bonuses:
  Foreign companies                Fixed Exchange Rate
  operate under the same           Backing with Reserves
  rules and regulations as
                                   Total Freedom of
  do National
                                   Bimonetary System
 Transfer of Capital and
  Earnings: Foreign
  companies may transfer
  all profit and capital
  without restriction.

  Tips for Foreign Expatriates
           Tips:                  Argentine Mannerisms:
 Being open is the best          Argentines are very
  policy.                          warm and friendly.
 Telephone use is not as         Occupy little physical
  widely accepted as in the        space between speakers.
  U.S.                            Seldom hide passion,
 Don’t depreciate                 sentimentality, or
  expressions of gratitude.        excitement.
 Women need be                   Argentines make special
  prepared for personal            effort not to offend.

                 5 Cultural Tips
 Establishing a close                     Expect long days.
  relationship is a                        Elegant clothes are very
  prerequisite for doing                    important. Argentines
  business in Argentina.                    take pride in their
 Compared to other
  South Americans,                         Argentine banter is full
                                            of putdown. Don’t be
  Argentines have a                         offended. You may
  reputation for                            respond in kind but do
  seriousness and                           not comment on the
  melancholy.                               institutions or customs of

         Dun and Bradstreet’s Guide to Doing Business Around the World
           Women Expatriates in
 Women represent 30-40% of the workforce
 Few women hold positions of power or management
 Foreign women will not have problems as long as they
  behave and dress professionally

  Craighead's International Business, Travel, and Relocation Guide to 81 Countries, 1998-99
        For More Information
 Camara Argentina de Comercio
 U.S. Embassy and Consulate General,
      -Tel: 54-1-777-4533
 Consular office of the Argentine Embassy

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