Porter Model in Argentina

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(coffee)Factor Group 1: Geographic levels and competitiveness plus regional specialization Argentina is an open economy and one which is integrated into the global matrix. The country represents South America at the G20, is a founding member of the World Trade Organization and has been an active participant of the UN Peacekeeping Operations for over 35 years. In terms of trade, Argentina is a full member of Mercosur, a customs union which also includes Brazil, Paraguay and Uruguay. A Preferential Trade Agreement with India is in place, a free-trade agreement with Israel is awaiting Congress' approval and diverse trade agreements are under negotiation with the Southern African Customs Union (SACU), countries of the Gulf Cooperation Council (GCC) and Morocco. A more comprehensive agreement with the European Union is also under negotiation. Argentine foreign trade has expanded significantly over the last six years. From 2003 to 2008, exports grew at an average annual rate of 18% while imports doubled this figure. The trade balance remained positive throughout. However, due to the drop in global trade resulting from the international economic and financial crisis, both exports and imports experienced a downturn during 2009.In 2009, manufactured goods represented 73% of the country’s total exports. Top of the list were manufactured products of industrial and agricultural origin, between them representing 70% of total exports, followed by raw materials, fuels and energy. Exports

The country’s main export products are soybean derivatives: flour, pellets, oil, and beans. Corn, wheat, transport and cargo vehicles, crude oil and petroleum, sunflower seed oil, ship and airplane fuels and lubricants follow in terms of sales. Argentina has a diversified export structure: according to the World Bank’s World Trade Indicators for 2008, it places just below Canada and the United Kingdom on the trade concentration index, above countries such as New Zealand, India, Mexico, South Africa and Australia. Brazil is the country’s leading export partner and receives over 20% of Argentine exports, followed by Chile, China and the U.S. Exports of goods and services grew steadily hitting a historical high of US$82.6 billion in 2008. Exports are recovering fast from the impact of the global economic crisis and were up 18% in the first semester of 2010. Imports

Argentina mostly imports capital and intermediate goods which make up 23% and 32% of its foreign purchases, respectively. This is followed, in order of priority, by parts and accessories for capital goods and consumer goods. The main products imported include transport vehicles and their accessories, diesel fuel, mobile telephones, airplanes and iron ore. As with exports, Argentina's main trading partner for imports is Brazil, the source of 31% of domestic purchases. This figure is well ahead of the U.S. and China, a country which has actually doubled its share of the Argentine import market since 2003. Major recovery is forecast for 2010 in the export and import of goods which is expected to keep the trade balance high. The excellent 2009-2010 harvest means a sharp increase in the shipments of primary and manufactured agricultural products, bolstered by increased industrial exports, particularly from the automotive sector. On the imports side, growth is linked to the increase in domestic demand for consumer goods, industrial supplies and energy.

District1
GDP per capita
 
(USD)
Santa Cruz
30,496
Neuquén
26,273
City of Buenos Aires
23,309
Tierra del Fuego
20,682
Chubut
15,422
Mendoza
9,079
Santa Fe
8,423
Río Negro
8,247
Buenos Aires Province
7,31
Córdoba
6,477
Catamarca
6,009
La Pampa
5,987
Entre Ríos
5,682
San Juan
5,642
San Luis
5,58
Salta
4,22
La Rioja
4,162
Corrientes
4,001
Tucumán
3,937
Jujuy
3,755
Misiones
3,751
Santiago del Estero
3,003
Formosa
2,879
Chaco
2,015

Factor group 2:...
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