Expanding your Business in Argentina - What you need to know The Argentine economy is expected to continue to grow strongly in 2011 driven by the same factors that yielded such favorable results in 2010. The economy rebounded sharply in 2010, growing by nine percent, from the relatively mild effects that the world economic crisis had on Argentina in 2009. There has also been a rebound in the GDP which has been triggered by the expansionary policies and commodity exports. This trend has been largely maintained, creating millions of jobs and encouraging internal consumption. Although expanding a business into Argentina market, offers tremendous potential, the only way to know if your business is ready is by doing a meticulous market research. Business opportunities in Argentina The doors are open in a wide range of sectors here, and the most promising business sectors, in Argentina, are the Creative industries and Fashion, Education & Training, Environment, Healthcare and Medical Devices, Oil, Gas & Power, etc. Market Entry Strategy A good business plan should never be underestimated as it is the key to success. A plan needs to provide clarity on how you intend to take your business by encompassing your objectives, forecasts and routes. A well-structured business plan for Argentina can often be the difference between success and failure for your international expansion here. It is therefore important to •
Identify the potential customers, locations, sales leads and channels
Identifying the best distribution channels
Studying your competitors their products, services, distribution channels
Market opportunities, risks and environment
Recognize the duties, regulatory filings to your operations
Workforce It is reasonably easy to find competitive and qualified staff as unemployment is high. The pay is generally lower than in the UK but higher than in the rest of Latin America. Labor costs in Argentina are a significant cost to business. As labor laws here are complex and changing, it is strongly recommended that expert legal advice be taken before entering into any contractual arrangement. Meeting the Challenges Export credit could be difficult to obtain in Argentina. Another issue which you should consider when deciding to set up a business in Argentina is inflation, which remains at high level. Problems regarding local bureaucracy and the proverbial slowness of the business procedures can also arise. For an international business expansion into the Southern European countries, sound knowledge of the markets especially that of Italy and Spain will be helpful. Making hurried and uninformed decisions can spell disaster for your business. It is of course no easy task to gain a complete understanding of the laws of another country, so, to ensure a smooth transition, you need the guidance of a professional who can help you follow the legal norms and fulfill all compliance regulations in your company international expansion. Know more - tax equalization expat, transfer pricing audit
The Argentine economy is expected to continue to grow strongly in 2011 driven by the same factors that yielded such favorable results in 201...