Producing and Selling Solar Panels in Argentina
Doing Business in Argentina
Argentina has a stable political structure and the government is working on developing economy. I would choose to produce and sell solar panels in Argentina through Joint Venture with an Argentina company, which is one of the Investment Entry Mode. And I would send 1 in sales, 2 engineers, 1 accountant, 1 in shipping, 3 technicians, and 2 managers.
Market reasons:
Firstly, Argentina has enriched solar resource. “Argentina’s eastern plains and north western regions are ideal for solar PV development. However, only 10 MW of solar has been installed in Argentina to date, making it a huge untapped resource” (Grotz, Decundo and Ernst and Young). It indicates that the potential market for solar panels is huge. In addition, the efficient of solar energy is the most concern factor of solar panels, “solar energy installations began as simple contraptions in Latin America but are increasingly led by technologically advanced providers deploying sophisticated equipment and expertise that makes foreign participation almost indispensable” (Solar Daily). And my company has the best electronics package on the market; it is a great opportunity for my product to take a major part of market share in Argentina.
Secondly, solar energy is one of the major renewable energy that Argentine government trying to develop. Argentina is the third-largest economy in Latin America, and one of the emerging markets around the world. However, the shortage in electricity is the major obstacle of the development. “Electricity demand continues to grow steadily in the country and forecasts suggest an ongoing annual increase of 6%. Estimates indicate that an additional 1 GW of new generation capacity per annum will be necessary to satisfy this growing demand” (Grotz, Decundo and Ernst and Young). To solve the problem, Argentine government not only passed a law to ensure that “8% of electricity demand should be generated by renewable sources by 2016”, but also developed
Argentina has a stable political structure and the government is working on developing economy. I would choose to produce and sell solar panels in Argentina through Joint Venture with an Argentina company, which is one of the Investment Entry Mode. And I would send 1 in sales, 2 engineers, 1 accountant, 1 in shipping, 3 technicians, and 2 managers.
Market reasons:
Firstly, Argentina has enriched solar resource. “Argentina’s eastern plains and north western regions are ideal for solar PV development. However, only 10 MW of solar has been installed in Argentina to date, making it a huge untapped resource” (Grotz, Decundo and Ernst and Young). It indicates that the potential market for solar panels is huge. In addition, the efficient of solar energy is the most concern factor of solar panels, “solar energy installations began as simple contraptions in Latin America but are increasingly led by technologically advanced providers deploying sophisticated equipment and expertise that makes foreign participation almost indispensable” (Solar Daily). And my company has the best electronics package on the market; it is a great opportunity for my product to take a major part of market share in Argentina.
Secondly, solar energy is one of the major renewable energy that Argentine government trying to develop. Argentina is the third-largest economy in Latin America, and one of the emerging markets around the world. However, the shortage in electricity is the major obstacle of the development. “Electricity demand continues to grow steadily in the country and forecasts suggest an ongoing annual increase of 6%. Estimates indicate that an additional 1 GW of new generation capacity per annum will be necessary to satisfy this growing demand” (Grotz, Decundo and Ernst and Young). To solve the problem, Argentine government not only passed a law to ensure that “8% of electricity demand should be generated by renewable sources by 2016”, but also developed
Cited: Bronstein, Hugh. Hugh Bronstein. 4 May 2012. 4 May 2012 <http://articles.chicagotribune.com/2012-05-04/news/sns-rt-us-argentina-ypfbre8421gv-20120503_1_argentina-risks-ypf-spain-s-repsol>. European Commission. Argentina. 18 April 2012. 3 May 2012 <http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/argentina/>. Grotz, Enrique, Pablo Decundo and Ernst and Young. Renewable Energy Recap: Argentina. 2 January 2012. 30 April 2012 <http://www.renewableenergyworld.com/rea/news/article/2012/01/renewable-energy-recap-argentina>. Miles, Tom. U.S., EU blast Argentina 's trade restrictions at WTO. 30 March 2012. 29 April 2012 <http://www.reuters.com/article/2012/03/30/us-argentina-wto-idUSBRE82T18Y20120330>. Palmer, Doug. No nationalization trend in South America - IMF. 3 May 2012. 4 May 2012 <http://uk.reuters.com/article/2012/05/03/imf-nationalizations-idUKL1E8G39C520120503>. Romero, Simon. "Move on Oil Comapny Draws Praise in Argentina, Where Growth Continues." The New York Times 27 April 2012: A7. Solar Daily. Latin America set on solar energy growth. 1 November 2011. 30 April 2012 <http://www.solardaily.com/reports/Latin_America_set_on_solar_energy_growth_999.html>. UNDP. "Argentina-Human Development Report." 2011. Human Development. 30 April 2012 <http://hdrstats.undp.org/images/explanations/ARG.pdf>. Weisbrot, Mark. Argentina 's critics are wrong again about renationalising oil. 18 April 2012. 1 May 2012 <http://www.guardian.co.uk/commentisfree/cifamerica/2012/apr/18/argentina-critics-oil-nationalise>.