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Argentina and Its Economy - Term Paper Example

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This paper "Argentina and Its Economy" focuses on the fact that Argentina is the second largest and most populous country in South America; the nation’s landscape is varied, from large metropolitan cities to fertile Pampas of the south and west which are rich in agricultural husbandry practices. …
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Argentina and Its Economy
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Download file to see previous pages Most of the Buenos Aires population comprises of youth between the ages of 17 to 40 who form the majority of our target market in any environment because their high-income levels produce high purchasing power (Brown, 1999). We note that the nation’s economy has a high nominal GDP per capita which provides for a high purchasing power of its citizens, which is suitable for our entrance into the market. Moreover, the nation boasts of the latest technology in infrastructure, in the world. The land, air, and water transportation systems are well developed, even in rural areas. This will enable safe and effective transportation of our exported vehicles to and within this nation. In addition, the country’s proximity to the Atlantic Ocean presents an added advantage in transporting the exports to our customer(s).
Argentina has some of the biggest and busiest ports and harbours in the world, these include Port of Mar del Plata, Port Belgrano, and Port of San Antonio Oeste. All of these ports are located on the Atlantic Ocean, making shipping exports to the country our most effective option. Moreover, Buenos Aires serves as a key distribution hub for the South American continent thereby expanding our company’s market potential (Brown, 1999). Customs requirements in Argentina are different among different groups, such as citizens, diplomats and visitors. Seeing that our potential buyer is a resident of Argentina not only owns a national car dealership business but Diplomatic Franchise as well; he is also involved in importing cars for his diplomatic clients. We should, therefore, meet the requirements of exporting diplomatic and conventional vehicles. Argentinian customs requirements for exportation of the diplomatic vehicle maintain that any person importing diplomatic cars must be licensed by the Ministry of Foreign Affairs; I have confirmed our potential client’s registration with the ministry, so this will not be a hindrance in doing business with him.
The ministry is also mandated with ensuring that all imported diplomatic vehicles are brand new or less than 5 years old. Argentinian laws also require that the vehicles and all its documentation should be under the importer’s name; therefore, we must ensure that all the documentation pertaining the vehicle's registration is done under our client’s name. The requirements further stipulate that the vehicles should be shipped into the country six months after the arrival of the importer; thus, we cannot export vehicles to the nation if our client is out of the country.
Moreover, the Argentinean government requires that the importer owns an original passport and at least two original bills of lading; he should also possess the original vehicle(s) purchase invoice and have the property title registered in his name. Vehicle taxation in Argentina is based on the Cost Insurance and Freight (CIF) values of the vehicles. The rates are 80% of the CIF for conventional vehicles, 100% for diesel cars and 65% for motorcycles. Importation of vehicles that do not have local equivalents in Argentina attracts quotas to limit importation and encourage purchasing of locally manufactured vehicles (Rock, 2001).
On the other hand, the UK customs requirements for exportation of vehicles require all old vehicles exported from the UK be registered with the Driver and Vehicle Licensing Agency (DVLA), in its place we will receive a Certificate of Permanent Export (V561) as proof of registration.  ...Download file to see next pagesRead More
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