Argentina

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DOING BUSINESS IN ARGENTINA

There has never been a more optimum time to start doing business in Argentina, with the country’s economic growth anticipated to reach 3.1% by 2019. Being a major global player in the production of agricultural commodities and boasting the second largest manufacturing ability in South America, the Argentinian market is a beneficial one to do business in.

Argentina has a large fiscal deficit, having recently experienced an economic downturn, which may pose a challenge to a market entrant. However, despite having the sixth highest Corporation Tax Rate in the world at 35%, Argentina made paying taxes less costly in 2017 by increasing the threshold for the 5% turnover tax. Improvements to the online portal for filing taxes has also made paying the levies easier.

The Argentinian government is proactively involved in the country’s business relations, frequently implementing new measures in a bid to stabilise the nation’s business environment and placing a tight control on trade and access to foreign exchange. This active involvement of the administration, in part, led to the World Bank ranking Argentina 117 out of 190 counties for ease of doing business in 2018.

Great value is placed on personal relationships when doing business in Argentina. In a country which was previously beset with political instability, reliance on strong long-term relationships remain an important factor. If those intending to do business in Argentina are prepared to do their research and adapt their business style to complement Argentinean culture, fruitful professional relationships should result in prosperous business gains.

The World Business Culture website contains vital information and actionable advice to help equip those doing business in Argentina with the understanding to navigate the country’s complex social and economic environment.

OVERVIEW

This country profile has been produced to give a short overview of some of the key concepts to bear in mind when doing business with contacts in Argentina. It is intended to be an aid to business people who have commercial dealings with counterparties in the country but should not be seen as an exhaustive guide to this topic or as a substitute for more substantial research should there be a need.

With this in mind, we have covered the areas which are key to a better understanding of the cultural mindset underpinning business dealings in Argentina and which are, quite often, extremely different from the approach and thought processes associated with business in other parts of the world.

Therefore this briefing note is broken into short, bite-sized sections on the following topics:

  • Background to business
  • Business Structures
  • Management style
  • Meetings
  • Teamwork
  • Communication
  • Women in business
  • Entertaining
  • Top tips