A GLOBAL / COUNTRY STUDY AND REPORT ON ARGENTINA SUBMITTED TO Gujarat Technological University IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ASMINISTRATION Under the Faculty Guide: Dr Mehul Shah, Mrs. Falguni Puwar and Ms Sashikala Munka Submitted by: Enrollment Numbers: 107550592001 to 107550592060 MBA SEMESTER -IV SARDAR PATEL COLLEGE OF ADMINISTRATION & MANAGEMENT (SPCAM-MBA) May 2012 1 STUDENTS DECLARATION We 107550592001 to 107550592060 Students of SARDAR PATEL COLLEGE OF ADMINISTRATION & MANAGEMENT (SPCAM-MBA) Bakrol,, hereby declare that the report for A GLOBAL / COUNTRY STUDY AND REPORT ON ECONOMIC POLICY OF ARGENTINA is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged. Place : .. Date : 2 PREFACE In today’s competitive environment, survival of the fittest is the new motto. That is why it’s necessary that the theoretical knowledge is accompanied by practical knowledge. In an MBA programmer, project study forms an important and an integral part. It helps in bridging the gap between the two main important aspects the theoretical as well practical knowledge. “Knowledge and Human Power are synonyms”, once said the great philosopher Francis Bacon. However based on the experience within today’s global markets, he would probably say, “The ability to capture, communicate & leverage knowledge to solve problems is human power”. This raises the question how exactly one can best capture, communicate & leverage knowledge, especially within world of system engineering. With the help of the county report we can get the information about the both country and the position of the both country and make compare both the country so we can say that which country is good and which country are linked with which country. So the country report is also helpful to show the country’s economy and all the rank like GDP and all that. With help of the country we get the information about the import and export of that country with other country and which things are more import and export form the country. 3 ACKNOWLEDGEMENT We have the pleasure to present herewith the study work on economic policy of Argentina. Working on this project has been a great learning experience. Numerous individuals helped us a lot with all sort of queries that we had and without the help of them, we would never be able to complete this Country Project. We would like to use this opportunity to thank them. We are extremely indebted to our guides (Dr Mehul Shah, Mrs Falguni solanki puwar and Ms Sashikala Munka) who have taken great pains to provide us guidance to make this project. She is always there to help us a lot by giving her valuable guidelines and suggestions to complete this study from start to end. She is the person who inspired us to explore such an emerging sector of economy. She inspired us to be systematic in our work. She explained that how to go ahead for studying such topic and also explained the technical and other dimensions of the same. We want to thank our Director General- SPEC, Dr. T. D. Tiwari for giving us an opportunity to work on this task. Lastly, we express our gratitude to the faculty of SPCAM and want to thanks GTU for giving us a chance to work on such practical task. We are aware that there are a number of people who have helped us to do this project but we may have failed to make a mention of them. We take this opportunity to express our sincere gratitude to all those for their assistance and support. Thanking All, 4 Executive summary The economic history of Argentina is one of the most researched, owing to the "Argentine paradox", its unique condition as a country which had achieved advanced development in the early 20th century but experienced a drawback, which inspired a wealth of literature and analyses on the causes of its decline. Argentina has a market-oriented economy with a lot of natural resources, a well-educated population, an export-oriented agricultural sector and a relatively diversified industrial basic exposure. The nation's services sector accounts for around 59% of the economy and 72% of employment, manufacturing is 21% of GDP and 13% of employment, and agriculture is 9% of GDP, with 7% of employment; construction, mining, and public utilities divide the rest. Agriculture, including processed goods, provided 54% of export earnings in 2010; however, while industrial manufactures accounted for 35% (energy staples and metal ores were most of the remainder). As Argentinean society is very status conscious, it is important to address colleagues with the proper title followed by only his or her father’s surname, unless invited to do so otherwise. Many Argentinean women are well educated and more are entering the workforce. However, women tend to leave the workforce upon having children, but a common Practice with many Argentinean women is to hire a nanny so that they may return to work. The Economy of India is the 11th largest in the world by nominal GDP and the third largest by purchasing power parity (PPP). The country is one of the G-20 major economies and a member of BRICS. In 2011, the country's per capita income stood at $3,694 IMF, 129th in the world, thus making a lower-middle income economy. The human development index in the Argentina is 0.86 while in the India it is 0.609. The GDP per capita in the Argentina is $14700 US while in India it is $3500 US. The Argentina exports the soybeans and derivatives, petroleum and gas, vehicles, corn, wheat etc.while the India exports petroleum products, textile goods, gems and jewelry, engineering goods, chemicals, leather manufacturers. Finally study of global country report shows that the life expectancy, human development index, literacy rate, GDP per capita, unemployment rate, political system, exchange rate and export import policy of both the countries and their comparison. 5 INDEX Sr. No Particular Total page no Semester Part I ECONOMIC OVERVIEW 05-23 III OF THE SELECTED COUNTRY 1 Argentina Demographics Profile 2011 III PART – II INDUSTRY / SECTOR 23-202 IV Banking Sector Economic Sector Transportation Sector Advertising And Media Entrepreneurship Export Import Sector Rural Sector Management Information Retail Sector Logistic Sector Bibilography 203-205 IV 6 Part-I 7 BRIEF INTRODUCTION ABOUT THE ARGENTINA Argentina has a population of 33 Million with an ethnic composition of 85 percent European descent, primarily Spanish or Italian. Indians, mestizos (people of mixed Indian and Spanish ancestry), and blacks together make up the remaining 15 percent. The Republic of Argentina is a democracy for now, but has had a long history of military power. Spanish is the official language, although many people speak English, Italian, or other languages. Argentine Spanish is heavily influenced by Italian and is unlike Spanish spoken anywhere in Latin America. Church and state are officially separate, but about 90 percent of the population considers itself Roman Catholic. Jews and Protestants account for 2 percent each. Eighty percent of the population resides in cities or towns of more than 2,000, and over one-third lives in the greater Buenos Aires area. Comprising almost the entire southern half of South America, Argentina is the world's eighth largest country, covering an area of 2.8 million square km. Argentina possesses some of the world's tallest mountains, expansive deserts, and impressive waterfalls, with the diversity of the land ranging from wild, remote areas in southern Patagonia to the bustling metropolis of Buenos Aires in the north. POPULATION Argentina: 41,769,726 (July 2011 est.) World Population 7 Billion MEDIAN AGE Total:30.5years Male:29.5years Female: 31.6 years (2011 est. 8 POPULATION GROWTH RATE Argentina: 1.017% (2011 est.) India: 1.41%, Birth rate 17.54 births/1,000 population (2011 est.) Nationality: - Argentine(s) ETHNIC GROUPS White (mostly Spanish and Italian) 97%, mestizo (mixed white and Amerindian ancestry), Amerindian, or other non-white groups 3% RELIGIONS nominally Roman Catholic 92% (less than 20% practicing), Protestant 2%, Jewish 2%, other 4% LANGUAGES Spanish (official), Italian, English, German, French LITERACY Definition: age 15 and over can read and write. Total population: 97.2% Male: 97.2% Female: 97.2% (2001 census) SCHOOL LIFE EXPECTANCY (PRIMARY TO TERTIARY EDUCATION) Total: 16 years Male: 15 years Female: 17 years (2007) EDUCATION EXPENDITURES 4.9% of GDP (2007) MATERNAL MORTALITY RATE 70 deaths/100,000 live births (2008) 9 CHILDREN UNDER THE AGE OF 5 YEARS UNDERWEIGHT 2.3% (2005) Official Name:República Argentina (Spanish)Argentine Republic Capital (largest city) Buenos Aires 34°20′S, 58°30′W Official languages Spanish ARGENTINA GDP GROWTH RATE The Gross Domestic Product (GDP) in Argentina expanded 2.50 percent in the second quarter of 2011 over the previous quarter. Historically, from 1993 until 2011, Argentina's average quarterly GDP Growth was 0.96 percent reaching an historical high of 3.70 percent in March of 2003 and a record low of -5.70 percent in December of 2001. Argentina is the third largest national economy in Latin America. Argentina has abundant natural resources, a well-educated population, an export-oriented agricultural sector and a relatively diversified industrial base. 10 STANDARD OF LIVING IN ARGENTINA Standard of Living in Argentina promises a fulfilling life in a beautiful, diverse and culturally rich country. It is the second largest country in South America and the 8th largest in the world. It is divided into four main parts: the Pampas, a flat area of land in the centre; Patagonia; a large area of expanse in the south; the sub tropical North and the Andes mountain range.