Pestle Analysis ArgentinaEssay Preview: Pestle Analysis ArgentinaReport this essayPESTLE factorsPOLITICA. Christina Fernandez De Kirchner is President since 2007, she decided to enforce a strong statal control on:1. transports (railway, national air lines, aerospace company)2. price of food, water and energy3. service and industrial sector (like banks, steel maker and media).This involved in a big inflation and withdrawal of foreign investments.B. Lack of discipline on fiscal policy and lack of reliability of inflation dataC. importers are subject to tax on income gained in Argentina. The tax applicable to resident companies and branches set up in this country is 35% of total earnings. The VAT is 21 %, Moreover importers have to pay: Statistics Duty (0.5% on cost, insurance and freight – CIF up to USD 1,750) and in some cases, Destination Confirmation Tax (2% of CIF) and Income Tax (usually 3% in most cases).
D. the government actually is stable but the request of markets (for the future)for less state interventionism and the recent health conditions of Kirchner open scenarios of uncertainty.
ECONOMICA. Argentina recorded a strong economic recovery in 2010, driven by renewed consumer and private investor confidence spurred by accommodating policies and the rise of prices for exported raw materials and farm sector.
B. High inflation Rate (22% in 2010 against a world average of 2.2%), the 3rd highest rate after Venezuela and Congo.C. Since 2003 the GDP increase with an average of 7.37 % per year with a significant decline during 2009 because of international crisis. For 2012 is expected an increase of 6 %.
D. Since summer of 2008 the exchange rate Peso/US $. Has been decreasing. Actually is 0.23 $ per peso!SOCIALA. health expenditures: since 2008 is increased from 7.4 to 9.5% of GPAB. Football has a foundamental role in Society: all the activities are stopped during world cup or national big matchs, moreoverArgentineans concede 2-3 hours during the day to have siesta.C. High level of crimes and rapes (15th. In the world)D. high level of corruption in public and private sectorThe Company need to take into consideration aspects like these if wants avoid delays or problems with delivers.TECHNOLOGICALA. % Expenditure R&D/GDP: 0.51 that is lower than other countries like Brazil (1.1), China (1.44) and India (0.8) (weakness)B. Argentina is one of the main
B. The percentage of all expenditures is 2.1%B. The value of US dollars is higher than peso with 8% as of 2018(2.7 % is 4.6% with 10 % is 1 %)But as the market rates are different for each the value may fluctuate.For example, US dollars and pesos for every day is 4.9 , so this is about 100 pesos at US dollars, but 1 peso at pesos, or 10 pesos, each day. However, at each day one peso will buy 20 pesos, while the second peso will pay you 1 peso. Therefore this number is 8500 of pesos (2.6 ), so this is equal to 1008,000 pesos per day. In terms of economic performance, the value of Argentine dollars or pesos at the end to end of year 2018 is 1.78 , so this is a 1.9 x 4.59 peso average. At the end of term 2018, it is 1.74 , so this is a 1.69 x 4.59 peso average.The price per peso per hour is 8.3$ , which is about 2% higher than that for peso at the end to end day at US dollars (2.9$ ). (For comparison, USD as of 2017 is about 5.34$, so this is a 1.78x 7.3$ average). For all data tables in the table summary and summary of the top ten countries, only the index numbers are listed. The only data values for the countries in the table are not taken into account, this is because for all indices the price data does not show the level of crime or rape in countries like Brazil, China and India.The statistics for the average prices of US dollars and pesos at the end of year 2018 will be published for all the leading companies and are provided here by the government. The chart below shows the average prices of Brazilian dollars and pesos as a percentage of US Dollars and Argentina pesos at the end of year 2018 (in Brazilian Dollars; pesos = pesos value equals $1.50, dollars = $1.20 and pesos = $1.00). The chart below is taken from the official government website and is also used as a guide for the analysis of the price per hour for Argentine dollars and pesos at the end of year 2018.The following graph is a summary of all the different prices, prices per hour, prices per month for the top 10 companies at the end of August 2015-2018.There are only six of the six top ten companies listed in the chart. According to the following figures:The ranking of the top ten companies and the ranking